GSMA vs DCIT: ITAT Rules No Royalty on IMEI Database Fees

GSMA Limited Vs DCIT (ITAT Delhi) Introduction: The recent ruling by the Income Tax Appellate Tribunal (ITAT) Delhi in the case of GSMA Limited vs DCIT has significant implications on the taxability of administrative fees received by the non-resident corporation. The dispute revolves around whether the fees should be treated as royalty under Section 9(1)(vi) of the Income Tax Act or Article 12(3) of the India-USA Double Taxation Avoidance Agreement (DTAA). Detailed Analysis: GSMA Limited, a non-profit entity incorporated in the USA, serves as the global decimal administrator, providing Interna...