royalty payment

In this view of the matter, we hold that the payment of royalty made by the assessee is out side the purview of section 40(a) of the Income-tax Act, 1961, and therefore, no TDS is required to be made from such royalty payment. Accordingly, we set aside the order of the CIT(A) and direct the Assessing Officer to delete the disallowance. The ground raised by the assessee is accordingly allowed. Full Article

The Delhi bench of the Income-tax Appellate Tribunal (the Tribunal), in the case of Oracle India (P) Ltd. V. ACIT (2009-TIOL-540-ITAT-DEL) (the taxpayer) held that section 40A(2) of the Income-tax Act, 1961 (the Act) overrides the provisions relating to computation of business income only and thus in relation to international transactions, the specific provisions embodied in Chapter X (section 92 - 92F) shall override the general provisions embodied in section 40A of the.. Full Article

Under the existing regulatory norms, remittances made by Indian residents to a foreign collaborator are permissible without any prior regulatory approvals to the extent of a lumpsum fee of USD 2 million and royalty payment of 5% on domestic sales and 8% on exports. However, payments in excess of the specified caps would require a prior approval from the Government. Full Article

SUMMARY OF CASE LAW Payments for chartering ships on hire for doing the business outside India do not satisfy the test laid down in section 9; when section 9 is not satisfied, there cannot be a case that income is deemed to accrue or arise in India as a result of hire payments made by [...] Full Article