Consideration towards right to use of brand name/ trademark taxable as royalty

Soktas Tekstil Sanayi Ve Ticaret AS Vs ACIT (ITAT Delhi) ITAT Delhi held that consideration for permitting the licensee the right to use of brand name or trademark has to be treated as Royalty in terms of section 9(1)(vi) of the Act read with Article 12 of the tax treaty. Accordingly, the same will be taxable. Facts- The core issue arising for consideration is whether the amount received by the assessee on account of transfer of trademark and brand name can be treated as royalty under Article 12 of India – Turkey Double Taxation Avoidance Agreement (DTAA), instead of capital gains under Arti...