Income from Film Distribution was not ‘Royalty’ under India-US DTAA

Warner Bros Distributing Inc. Vs ACIT (ITAT Mumbai)

Conclusion: Revenue from film distribution was specifically excluded from the definition of “royalty” under both the Act and the India-USA DTAA and interest earned on income tax refund was not effectively connected with any permanent establishment in India and should be taxed at 15% as per Article 11(2) of the India-US DTAA.

Held: Assessee, a tax resident of the USA, was engaged in the distribution of films and had entered into an agreement with Warner Bros. Pictures (India) Pvt. Ltd. (

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