Royalty paid by non-resident does not arise in India if there is no “economic link” between the PE and the royalty

DDIT Vs. SET Satellite (Singapore) (ITAT Mumbai)

The assessee, a Singaporean company with a PE in India, obtained rights from the Global Cricket Council, Singapore, for telecast of cricket matches in India. The AO took the view that the payment for the said rights constituted “royalty” in the hands of GCC u/s 9(1)(vi) & Article 12(7) of the India-Singapore DTAA and that it had arisen in India on the ground that the payer had a PE in India and there was a direct nexus between collection of advertisement revenue i

Please become a Premium member. If you are already a Premium member, login here to access the full content.