Tribunal held that, various coordination/facilitation services rendered such as, arranging for locational crew, producer, transportation, paper work for various stunts to be performed and other requirements for setting up and filming series, etc., were in nature of Line Production Services, same could not be termed as technical, managerial or consultancy services. Accordingly the consideration received by assessee for rendering of aforesaid services, could not be brought to tax as FTS. Tribunal also held that the consideration cannot be taxes as royalty since ownership of copyright remained vested with Endemol India. (AY. 2012-13)
Endemol South Africa (Proprietary) Ltd. v. Dy. CIT (2018) 172 DTR 111 / 196 TTJ 594 / 67 ITR 520 / 98 taxmann.com 227 (Mum.)(Trib.)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–Various coordination/facilitation services rendered- Business of developing and producing entertainment serials for audio visual platform -Consideration cannot be assessed as royalty -DTAA-India- South Africa [S. 9(1)(vi), 9(1)(vii), Art. 12]