Assessee is a Singapore based company and operated TV channels through different agencies. Assessee received a part of subscription charges paid by customers which enable customers to view channels operated by assessee. Dismissing the appeal of the revenue the Court held that this was not a case where payment for any copyright in literary, artistic or scientific work was being made, nor assessee was parting with any copyrights therefore payment could not be categorized as royalty. (Followed Set Satellite (Singapore ) P. Ltd. (2008) 307 ITR 205) (Bom) (HC) Dy.CIT v. Set India (P) Ltd. (ITA No. 4372 /Mum/ 2004 dt.25 04 2012)
CIT v. MSM Satellite (Singapore) Pte. Ltd. (2019) 265 Taxman 376/ 180 DTR 13/(2020) 313 CTR 102 (Bom.)(HC)
S. 9(1) : Income deemed to accrue or arise in India–Business connection-Royalty-Broadcasting services – Subscription-TV channel operator from customers-Receipt was not for transfer of any copyright in literary, artistic or scientific work-Cannot be categorized as royalty income-International taxation-DTAA-India –Singapore [S.9(1) (vii), Copy Right Act 1957, S. 2(y), 14, 37 Art,5, 12]