AO held that foreign remittance made by assessee to Fair Isaac International Corpn. towards \u2018license fees\u2019 was by way of \u201croyalty\u201d was taxable in India as contemplated in Article 12 of the India-USA Tax Treaty as the assessee neither withheld tax while making remittance nor obtained a certificate for non-deduction of tax at source u\/s. 197, AO treated \u00a0the assessee as being in default within meaning of S.201 which was up held by the CIT(A). Tribunal held that the assessee has had made remittance\u00a0 for\u00a0 a non-exclusive and non-transferable license to use copyrighted article i.e. \u201cBlaze advisor\u201d software by Fair Isaac International Corpn\u00a0 \u00a0which had retained with itself copyrights of same, therefore, amount received by said \u00a0company\/ licensor from assessee did not give rise to any royalty income within meaning of Article 12(3) of the India-USA tax treaty.\u00a0 No liability was cast upon assessee to deduct tax at source at time of making of remittance, hence assessee could not be treated as an assessee in default within meaning of S. 201. \u00a0The said \u00a0company did not have a PE in India, hence its business profits from rendering maintenance services also could not be brought to tax in India under Article 7 of India-USA Tax Treaty .Accordingly not liable to deduct tax at source. Rendering of training services by F company could also assume same character as that of software license receipts, and as such would be in nature of its business profits under Article 7 of the India, accordingly not liable to deduct tax at source. (AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Deduction at source-Non-resident-Licence fee-Paid for copy righted article-Maintenance fees-Training fees-Not liable to deduct tax at source-DTAA-India-USA. [S. 195, 197, 201, Art.7, 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":[1],"tags":[],"class_list":["post-5099","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1kf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/5099","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=5099"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/5099\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=5099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=5099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=5099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}