Assessee, a German company, entered into a commissionaire agreement with an Indian company, SIPL. Assessee was appointed as a non-exclusive sales representative of SIPL and received commission for providing customer and support sales services. Assessing Officer held that commission income was taxable as royalty under section 9(i)(vi) and also under DTAA. Held that commission received by assessee was merely export commission/sales commission and could not be treated as FTS. (AY. 2014-15, 2015-16)
Springer Verlag GmbH v. DCIT (2022) 197 ITD 173 (Delhi) (Trib.)
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Royalty-Commission for providing customer and support sales services-Export commission/sales commission and could not be treated as FTS-DTAA-India-Germany. [S. 9(1)(vi), Art. 12]