Chargeability of royalties and technical service fees: nonresidents taxable when effectively connected to an Indian permanent establishment. Royalty and fees for technical services received by a specified assessee are chargeable as business or professional income when received from the Government or an Indian concern under an agreement and where the assessee operates in India through a permanent establishment or fixed place of profession and the right, property or contract is effectively connected to that establishment; specified non-deductible expenditures and intra-group payments are disallowed, section 61 (as specified) does not apply, and recordkeeping and audit/reporting obligations under sections 62 and 63 apply.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Chargeability of royalties and technical service fees: nonresidents taxable when effectively connected to an Indian permanent establishment.
Royalty and fees for technical services received by a specified assessee are chargeable as business or professional income when received from the Government or an Indian concern under an agreement and where the assessee operates in India through a permanent establishment or fixed place of profession and the right, property or contract is effectively connected to that establishment; specified non-deductible expenditures and intra-group payments are disallowed, section 61 (as specified) does not apply, and recordkeeping and audit/reporting obligations under sections 62 and 63 apply.
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