Assessee, a tax resident of USA, was engaged in business of maintaining online data base (Lexis Nexis) pertaining to legal and law related information. \u00a0It received subscription fee for providing access to data base-Since assessee had no PE in India, it filed return of income by treating subscription fee received for providing access to data base as business income, not taxable in India as per provisions of India-US DTAA.\u00a0 Assessing Officer, \u00a0treated receipt of assessee as FIS on ground that same was in nature of technical consultancy. \u00a0Tribunal held that subscription fee received by assessee was in nature of business profit which could not be brought to tax in India in absence of Permanent Establishment (PE). On appeal the Court held that\u00a0 \u00a0access to data base did not constitute rendering of any technical or consultancy services and in any case did not amount to technical knowledge, experience, skill, know-how or processes being made available to subscriber neither there was any transfer of copyright. Order of Tribunal is affirmed.(AY. 2018-19, 2019-20)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Business connection-Subscription fee-Access to data base pertaining to legal and law related information-Business profits-No permanent establishment in India-Not taxable in India-DTAA-India-USA. [S.9(1)(1), Art. 5, 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":[21],"tags":[],"class_list":["post-52846","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dKm","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52846","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=52846"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52846\/revisions"}],"predecessor-version":[{"id":52847,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52846\/revisions\/52847"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}