Royalty characterisation determines taxation of cross border engineering payments; assessors must establish correct head for tax treatment. Engineering fees to non resident collaborators must be characterised as either royalty or fees for technical or engineering services, because the characterisation determines source and allocation for tax. The Board instructs tax officers to examine the basic nature of such receipts in pending appeals and make representations to ensure assessment under the correct head. Where collaboration agreements pre date amendments and were government approved, officers must determine whether the fees are in the nature of royalty and raise the issue before appellate authorities if no finding exists.
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.
Royalty characterisation determines taxation of cross border engineering payments; assessors must establish correct head for tax treatment.
Engineering fees to non resident collaborators must be characterised as either royalty or fees for technical or engineering services, because the characterisation determines source and allocation for tax. The Board instructs tax officers to examine the basic nature of such receipts in pending appeals and make representations to ensure assessment under the correct head. Where collaboration agreements pre date amendments and were government approved, officers must determine whether the fees are in the nature of royalty and raise the issue before appellate authorities if no finding exists.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
