The Tribunal held that receipt from subscription fees does not fall within the ambit of fees from technical service defined u/s. 9(1)(vii). Further, by placing reliance of the order passed in case of group company viz. Elsevier Information Systems GmbH (ITA No. 1683/Mum/ 2015), held that receipt from online database is in the nature of business profit, therefore, the same is not taxable in India in absence of permanent establishment in India under Article 7 of India-US DTAA. (AY.2018-19,2019-20)
Relx Inc. v. ACIT (2023) 149 taxmann.com 78 / 103 ITR 54 (SN)(Delhi) (Trib)
S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services-Non-resident-Subscription fees receipt from India – Online Database-Not taxable in absence of permanent establishment in India-DTAA-India-USA .[S.9(1)(i), Art. 7]