AAR held that broadly there was no difference between the meaning of “royalty” under the Act and under the Double Taxation Avoidance Agreement and the premium payment would be covered under article 12(3) of the Double Taxation Avoidance Agreement, i.e., payment for use or right to use information regarding commercial experience. VIVO had kept a database, nurtured by commercial experience, relating to its mobile services and this valuable right had been shared with the applicant on exclusive basis. This was clearly in the nature of commercial information and experience shared with the applicant and the consideration paid was thus covered under article 12(3) of the Double Taxation Avoidance Agreement hence the income deemed to accrue or arise in India  in terms of section 9(1)(vi) (b) as royalties.