Held that the payments made by the Assessee to the foreign companies for hiring dredgers on a time charter basis qualify as royalty under Section 9(1)(vi) of the Income-tax Act. That the Assessee had exclusive control and possession of the dredgers, and the payments were made for the use of equipment, thus qualifying to be taxed as Royalty. Liable to deduct tax at source.(AY 2003 to 2010-11)
Jaisu Shipping Co. v. ADIT (2024) 111 ITR 601/160 taxmann.com 128 (Rajkot)(Trib.)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Payments made for hiring dredgers on a time charter basis qualify as royalty for use of equipment-liable to deduct tax at source.[S.195]