Cloud Subscription Fees Not Royalty under India-Ireland DTAA: ITAT Delhi

GoTo Technologies Ireland Unlimited Company Vs ACIT (ITAT Delhi)

In the case of GoTo Technologies Ireland Unlimited Company vs. ACIT, the ITAT Delhi ruled on the taxability of subscription fees from cloud services under the India-Ireland Double Tax Avoidance Agreement (DTAA). The Assessing Officer (AO) had previously classified these fees as royalty, subject to a 10% tax rate, leading to a significant discrepancy between the assessed income and the amount reported by the appellant. The appellant, a non-resident Irish company providing software as a service (SaaS), argued that the f

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