Legal Database Subscription not Copyright Transfer, Fee Not Royalty: Delhi HC

CIT Vs RELX Inc (Delhi High Court) In a landmark judgment, the Delhi High Court has delivered a verdict in the case of CIT vs. RELX Inc, which has significant implications for the taxation of subscription fees for legal databases in India. The court has ruled that subscription fees paid for accessing legal databases cannot be construed as a transfer of copyright, thereby not qualifying as royalty under the Income Tax Act, 1961, and the India-USA Double Taxation Avoidance Agreement (DTAA). This decision provides clarity on the nature of subscription fees and their taxability, impacting nume...