TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether subscription fees received for access to an online database were taxable in India as fees for technical services or royalty, and whether in the absence of a permanent establishment the receipts could be assessed as business income.
Analysis: The subscription arrangement involved granting access to books, journals, articles and related online analytical tools, without any transfer of copyright or rendering of managerial, technical or consultancy services. The access granted did not satisfy the requirement of making available technical knowledge, experience, skill, know-how or processes. In the absence of a permanent establishment in India, the receipts fell within business profits under the treaty and could not be brought to tax as fees for technical services or royalty under the Act or the India-UK DTAA.
Conclusion: The issue is decided in favour of the assessee; the subscription fees were not taxable in India as fees for technical services or royalty.
Ratio Decidendi: Mere access to a database, without transfer of copyright or making available technical knowledge or skills, does not constitute fees for technical services or royalty, and in the absence of a permanent establishment the receipts are taxable only as business profits under the treaty.
TaxTMI 
TaxTMI 
