Assessee, a Singapore based company, had entered into franchise agreement with Indian companies to sub-license brand names to third party hotels in India. Assessee offered amounts received towards franchise, license fee etc. as royalty income. However, assessee did not offer receipts from reservation services, marketing services and loyalty programme to tax in India pleading that they were neither in nature of royalty nor fees for technical services. Assessing Officer held\u00a0 that amount received for services rendered in connection with use or right to use any trade mark fell within scope of royalty and, thus, treated said receipts as royalty\/fee for technical services under section 9 and under article 12 of India-Singapore DTAA. DRP affirmed the order of the AO. On appeal the Tribunal held that\u00a0 since in assessee’s own case for earlier assessment year 2015-16, on similar facts, it was held that there was no transfer of use or right to use any industrial or commercial or scientific equipments and, thus, amount in dispute could not be qualified as royalty. Addition is deleted.\u00a0\u00a0 (AY.2020-21, 2021-22)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fees for technical services-Receipts from reservation fee, marketing fee and loyalty programme-Cannot be assessed as royalty income-DTAA-India-Singapore [S.9(1)(vii), 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-49723","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cVZ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49723","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=49723"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49723\/revisions"}],"predecessor-version":[{"id":49724,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49723\/revisions\/49724"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}