The assessee placed advertisements on platforms of FB, AWS and RSC, making payments without TDS. AO treated assessee as assessee-in-default. CIT(A) confirmed. Tribunal, relying on Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT (2021) 432 ITR 471 (SC), held payments were not royalty under s. 9(1)(vi) or Art. 12(3) of DTAA. High Court dismissed Revenue\u2019s appeal, holding the facilities were enabling in nature and copyright remained with service providers. Liberty granted to Department to seek review depending on SC\u2019s outcome in Engineering Analysis.(AY. 2015-16, to 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 195 : Deduction at source-Non-resident payments-Royalty
\nPayments for online advertisements to FB, AWS, RSC not royalty-No TDS liability-DTAA-India-USA.[S. 9(1)(vi), 201(1), 201(1A), 260A, Art. 12(3)]<\/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-56922","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eO6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56922","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=56922"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56922\/revisions"}],"predecessor-version":[{"id":56923,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56922\/revisions\/56923"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=56922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=56922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}