https://www.taxtmi.com/caselaws?id=64433 The treaty definition of royalty prevailed over the wider domestic-law definition, so a lump-sum payment for transfer of technical know-how, drawings and documents under a collaboration agreement was not taxable as royalty where the treaty definition did not cover that transfer in the same breadth. The foreign enterprise's receipts were also not taxable in India as business profits because the treaty permitted such taxation only where the enterprise carried on business through a permanent establishment in India, and the limited technical visits and commissioning activities did not amount to a permanent establishment on the facts. The treaty therefore controlled the tax treatment and the assessee succeeded on both issues. en-us Tue, 11 Oct 1988 00:00:00 +0530 Mon, 07 Feb 2011 18:14:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64433 The treaty definition of royalty prevailed over the wider domestic-law definition, so a lump-sum payment for transfer of technical know-how, drawings and documents under a collaboration agreement was not taxable as royalty where the treaty definition did not cover that transfer in the same breadth. The foreign enterprise's receipts were also not taxable in India as business profits because the treaty permitted such taxation only where the enterprise carried on business through a permanent establishment in India, and the limited technical visits and commissioning activities did not amount to a permanent establishment on the facts. The treaty therefore controlled the tax treatment and the assessee succeeded on both issues. Case-Laws Income Tax Tue, 11 Oct 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64433