Taxability of cross-border interest, royalty and technical fees extended based on payer residence and location of business use. The amendment inserts chargeability for interest, royalty and fees for technical services when payable by the Government, residents (subject to exceptions where the payments relate to business or income-earning activities carried on outside India) and non-residents (when payments relate to activities carried on in India). It preserves a proviso exempting certain lump-sum royalty payments under pre-existing agreements, provides a deeming rule and option for later agreements, and furnishes expansive definitions of 'royalty' and 'fees for technical services.'
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Provisions expressly mentioned in the judgment/order text.
Taxability of cross-border interest, royalty and technical fees extended based on payer residence and location of business use.
The amendment inserts chargeability for interest, royalty and fees for technical services when payable by the Government, residents (subject to exceptions where the payments relate to business or income-earning activities carried on outside India) and non-residents (when payments relate to activities carried on in India). It preserves a proviso exempting certain lump-sum royalty payments under pre-existing agreements, provides a deeming rule and option for later agreements, and furnishes expansive definitions of "royalty" and "fees for technical services."
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