Held that since article 12 of DTAA specifically covered consideration for use of any industrial or commercial equipment, consideration paid by assessee for use or right to use of overall ICT infrastructure set up by its holding company would fall within term ‘royalty’ within meaning of section 9(1)(vi)(b) at hands of said holding company and assessee was liable to deduct TDS on same. Disallowance is justified. (AY. 2012-13)
Vanderlande Industries (P.) Ltd. v. ACIT (2022) 194 ITD 229/ 99 ITR 585 / 219 TTJ 493 216 DTR 289 (Pune)(Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Royalty-For use or right to use of overall ICT infrastructure-Liable to deduct tax at source-Disallowance is justified DTAA-India-Netherlands. [S. 9(1)(vi)(b), 195, Art. 12]