https://www.taxtmi.com/caselaws?id=62879 Lump sum consideration for transfer of technical know-how was analysed under the Income-tax Act and the applicable treaty. The text explains that treaty provisions prevail over conflicting domestic provisions under section 90, and that the foreign recipient's business profits are taxable in India only if it has a permanent establishment, while royalty is taxable only if the payment fits the treaty definition. Because the agreement provided for transfer of know-how for use, exploitation and ownership on a non-contingent lump sum basis, without refund for non-use, the payment was treated as consideration for outright transfer rather than royalty. On that basis, the remittance was not subject to Indian tax deduction at source. en-us Fri, 31 May 1991 00:00:00 +0530 Sat, 22 Jan 2011 13:18:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62879 Lump sum consideration for transfer of technical know-how was analysed under the Income-tax Act and the applicable treaty. The text explains that treaty provisions prevail over conflicting domestic provisions under section 90, and that the foreign recipient's business profits are taxable in India only if it has a permanent establishment, while royalty is taxable only if the payment fits the treaty definition. Because the agreement provided for transfer of know-how for use, exploitation and ownership on a non-contingent lump sum basis, without refund for non-use, the payment was treated as consideration for outright transfer rather than royalty. On that basis, the remittance was not subject to Indian tax deduction at source. Case-Laws Income Tax Fri, 31 May 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62879