TDS deductible on Remittance to Google Ireland by Google India

The assessee in the present case has used the information, patented technology, etc., from Google Ireland Limited (GIL) which in the opinion of the bench, is royalty and therefore, as per the mandate of Article 12(2), the royalty is to be taxed in the contracting state (India) in accordance with the laws of India. Clause (2) of Article 12 of DTAA clearly provides as under :

12(2) : However, such royalties or fees for technical services may also be taxed in the Contracting State in which they arise, and according to the law

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