Case Law Details
RELEVANT PARAGRAPH
1.1 The following facts are stated in the application and in the written submissions filed:
The applicant maintains a `database’ which is located outside India and which contains the financial and economic information including fundamental data of a large number of companies world-wise. The customers of the applicant are mostly financial intermediaries and investment banks which have the need for such data. The databases contain the published information collated, stored and displayed in an organized manner by Fact Set, though the information contained in the database is available in public domain. The applicant, however, through its database enables the customer to retrieve this publicly available information within a shorter span of time and in a focused manner. The database maintains historical information and all the databases of FactSet are maintained at its datacenters in USA. For a customer to access and view FactSet data, the customer need to down-load client interface software (similar to internet browser). The customer can subscribe to specific database as per its requirement. The `lion-share’ database provides information on the shareholding by global holders of global equities. The `Shark repellent’ database provides information on takeover defence strategies adopted by various U.S. Public companies over a period of time. The Mergerstat database tracks formal transfers of ownership. A Call street database includes transcripts of quarterly conference calls (e.g. analysts’s queries) held by public companies. There are some more databases also. A customer can view the data on their computer screens. The software, tools database and other related documentation are hosted on the FactSet’s main frames and data libraries. Through the tools, any commercial data on FactSet’s database can be easily woven into charts, graphs and spread-sheets. FactSet allows the data to be viewed and used only in the internal documents of its customers. The applicant seeks advance ruling on the following questions formulated by it:
1. Whether, on the facts and circumstances of the case, FactSet Research Systems Inc. (`FactSet’ or `the applicant’) will not be taxable in India under the Income-tax Act, 1961, with respect to the subscription fees?
2. Whether, on the facts and circumstances of the case, the applicant will not be taxable under the Double Taxation Avoidance Agreement entered into between the Government of India and the Government of United States of America with respect to the subscription fees?
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