{"id":15122,"date":"2021-02-02T11:41:43","date_gmt":"2021-02-02T11:41:43","guid":{"rendered":"https:\/\/itatonline.org\/digest\/dit-v-autodesk-asia-pvt-ltd-karnhc-www-itatonline-org\/"},"modified":"2021-03-15T10:31:28","modified_gmt":"2021-03-15T05:01:28","slug":"dit-v-autodesk-asia-pvt-ltd-karnhc-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/dit-v-autodesk-asia-pvt-ltd-karnhc-www-itatonline-org\/","title":{"rendered":"DIT v. Autodesk Asia Pvt. Ltd. ( 2020) 275  Taxman 319\/ 120 taxmann.com 324  (Karn)(HC), www.itatonline.org"},"content":{"rendered":"<p><strong>The AO held\u00a0 that the software supplied by the assessee\u00a0 <\/strong><strong>\u00a0<\/strong>is chargeable to income tax from royalty and technical services.\u00a0 CIT (A)\u00a0 affirmed the order of the AO.\u00a0 Tribunal decided in favour of the assessee . On appeal the revenue The question before the High Court was \u201c Whether the Tribunal was correct in holding that the assessee is liable to be taxed at 10% in view of replacement of 5% with 10% of tax in Article 12 of the DTAA without taking into consideration that the modification of rate of tax by way of notification dated 18.07.2005 was with effect from 01.08.2005 and recorded a perverse finding?\u201d\u00a0 The Court held that\u00a0 <strong>the substitution of a provision results in repeal of earlier provision and its replacement by new provision. When a new rule in place of an old rule is substituted, the old one is never intended to keep alive and the substitution has the effect of deleting the old rule and making the new rule operative. Though Notification dated 18.07.2005 (which substitutes paragraph 12 of Article 12 of the DTAA to provide for levy of tax on the royalties or fees for technical services at a rate not exceeding 10%) issued u\/s 90 came into force with effect from 01.08.2005, it applies to the entire fiscal year .<\/strong> <strong>( ITA No .133 of 2013\u00a0 dt 15 -9-2020\u00a0\u00a0 ) <\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 9(1)(vi) : Income deemed to accrue or arise in India \u2013  Royalty -Interpretation of statutes  and DTAA  &#8211; DTAA- India \u2013 Singapore [ S. 9(1) (vii), 90 , 195 , Art . 12 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-15122","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3VU","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/15122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=15122"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/15122\/revisions"}],"predecessor-version":[{"id":15754,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/15122\/revisions\/15754"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=15122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=15122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=15122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}