Royalty Payments not Taxable in India Sans Economic Nexus with Permanent Establishment

Advertisement Citation : SET Satellite (Singapore Pte Ltd.) Vs. ADIT, ITA No. 7349/Mum/2004 Court: Income Tax Appellate Tribunal, Mumbai In a recent case of SET Satellite Singapore Pvt. Ltd. the Income Tax Appellate Tribunal, Mumbai (“ITAT”) has held that royalty payments made by a resident of Singapore to another Singaporean entity, as consideration of rights to transmit and broadcast matches etc. in India, are not subject to Indian withholding tax requirements. The ITAT in this case relied on Article 12(7) of the India-Singapore Tax Treaty (“Treaty”), which provides that royalty p...