Amount Received from US Broadcasting Company Not Taxable as “Royalty” Under India-US DTAA

Turner Broadcasting System Asia Pacific Vs DCIT (ITAT Delhi) Conclusion: Distribution revenue received by Turner Broadcasting System Asia Pacific, Inc. ( TBSAP ), a U.S.-based company, from its Indian affiliate was not taxable as “royalty” under the Income Tax Act, 1961, or the India-U.S. Double Taxation Avoidance Agreement ( DTAA ) but as business income and there was no justification for deviating from this consistent approach without any change in facts or law. Held: TBSAP, a tax resident of the United States, had entered into an agreement with Warner Media India Private Limited (WMIPL...