Assessee, a tax resident of UK, was engaged in business of providing human resource background screening services including pre-employment background screening, employment, education, verification services and investigative due diligence services etc.\u00a0\u00a0\u00a0 Assessing Officer held that reports provided by assessee was protected by copyright laws and, therefore, use of such reports by clients would result in use of copyright chargeable to tax as royalty and consideration received by assessee was for allowing use of database to its clients and was chargeable to tax as royalty and services provided by assessee were ancillary to alleged ‘royalties’ and, therefore, also taxable as FTS.\u00a0 On appeal the Tribunal held that\u00a0 assessee is\u00a0 only providing a report summarising its findings with respect to background check undertaken by assessee which was primarily a factual data and could not per se qualify as literary or artistic or any other copyrightable work as such a report could not be copyrighted as it did not fulfil requirements enlisted under section 13(1)(a) of Indian Copyright Act, 1957.\u00a0 Therefore, consideration received by assessee under terms of its agreement with its client was purely towards provision of background screening services could not be regarded as royalties under provisions of article 13. (AY. 2019-20, 2020-21)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Business of providing human resource background screening services including pre-employment background screening, employment, education, verification services and investigative due diligence services etc-Consideration cannot be treated as royalty-DTAA-India-UK.[S.9(1)(vii), art. 13 (4), Indian Copyright Act, 1957 , S. 13(1)(a)] <\/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-44467","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bzd","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44467","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=44467"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44467\/revisions"}],"predecessor-version":[{"id":45635,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44467\/revisions\/45635"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}