FRD Solutions FZC v. Dy. CIT (2023) 222 TTJ 628 (Mum)(Trib)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-No right in the domain name-Income received from domain name registration is not royalty-Web hosting-Does not constitute royalty-Conducting conference for two days cannot be considered as fixed place of business and excluded from the definition of Permanent Establishment- DTAA-India-UAE. [S. 90, art. 5(3), 7, 12]

 

Held that the assessee functions merely as the registrar in the domain name registration process and it has no right in the domain name of the customer / registration, therefore the income received by the assessee from domain name registration is not royalty as defined in art. 12(3) of the DTAA between India and UAE. Held that web hosting services to end customers who do not have any control over the equipment belong to the assesseee, therefore the income from web hosting services does not constitute royalty under the provisions of art. 12(3) of the DTAA between India and UAE. Tribunal also held that conducting conference for two days cannot be considered as fixed place of business and excluded from the definition of Permanent Establishment. (AY. 2017-18, 2018-19 )