Income deemed to accrue or arise in India - “If Royalty is payable by” - Section 9(1)(vi)

Royalty deemed to accrue in India where rights or information are used or exploited for Indian business or Indian income.

Section 9(1)(vi) deems royalty payable by the Government or by a resident to accrue in India unless the right, property, information or services are used or utilised wholly for a business or to earn income outside India; royalty payable by a non-resident is deemed to accrue in India when used or utilised for a business carried on in India or for earning income from a source in India. The provision excludes capital-gains-chargeable transfers, exempts certain lumpsum software-with-hardware transfers under an approved scheme, and defines 'royalty' to include transfers, use, technical information, equipment use and related services.