Assessee, a tax resident of the USA, received consideration from licensing of software to RJIL and support and maintenance services. Assessee claimed that these were business income not chargeable to tax in India in the absence of any PE. Assessing Officer held that the right imparted was to use a proprietary process taxable as process\/copyright royalty, and that support and maintenance were inextricably linked to the license and constituted FTS with ‘make available’ test satisfied. Accordingly, the Assessing Officer assessed the entire receipts as FTS taxable at 10 per cent under Article 12 of DTAA.\u00a0 On appeal, the Tribunal held that consideration for both software licensing and support services (AMC) was not taxable in India as ‘Royalty’ or ‘Fees for Technical\/Included Services’ under Article 12 of India-USA DTAA, but constituted non-taxable business income in the absence of a Permanent Establishment. Addition was deleted.(AY. 2022-23)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii): Income deemed to accrue or arise in India-Fees for technical services-Royalties-Consideration from licensing of software and support services-No permanent establishment-Non-taxable business income in the absence of any Permanent Establishment-Addition as FTS\/FIS was deleted-DTAA-India-France.[S.9(1)(i), 9(1)(vi, 90, 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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61273","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fWh","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61273","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=61273"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61273\/revisions"}],"predecessor-version":[{"id":61274,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61273\/revisions\/61274"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}