Transfer pricing comparables and operating income principles applied to software development services, with exclusions, inclusions, and tax credit ver...
Transfer pricing on performance guarantees and overdue receivables deleted where warranty obligations were embedded and working capital adjustment alr...
Routine back-office support services were not royalty under the applicable DTAAs because the agreements showed no grant of rights in copyright, patents, designs, secret processes or equipment, and the domestic Act could not override the more beneficial treaty. The same receipts were also treated as business profits and, in the absence of a permanent establishment in India, not taxable in India. Claims against fee for delayed return filing and interest for delayed filing were remanded for verification of whether the returns were filed within time. The challenge to initiation of penalty under the anti-underreporting provision was rejected as premature.
Routine back-office support services were not royalty under the applicable DTAAs because the agreements showed no grant of rights in copyright, patents, designs, secret processes or equipment, and the domestic Act could not override the more beneficial treaty. The same receipts were also treated as business profits and, in the absence of a permanent establishment in India, not taxable in India. Claims against fee for delayed return filing and interest for delayed filing were remanded for verification of whether the returns were filed within time. The challenge to initiation of penalty under the anti-underreporting provision was rejected as premature.
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