https://www.taxtmi.com/caselaws?id=65480 An outright supply of designs and drawings prepared abroad was treated as a sale of a design package, not a licence of intellectual property. Applying noscitur a sociis, the terms in section 9(1)(vi) and article 12(3) were read in context, so "design" and "model" did not extend to a transfer where the supplier retained no proprietary rights. The receipt was therefore not royalty and was not taxable in India under section 9(1)(vi); the treaty could not operate as an independent charging provision. The income was treated as business profit, with article 7 governing and article 22 not applying. On that basis, no tax was required to be withheld on the remittance. en-us Fri, 04 Jul 2008 00:00:00 +0530 Fri, 20 Jul 2012 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65480 An outright supply of designs and drawings prepared abroad was treated as a sale of a design package, not a licence of intellectual property. Applying noscitur a sociis, the terms in section 9(1)(vi) and article 12(3) were read in context, so "design" and "model" did not extend to a transfer where the supplier retained no proprietary rights. The receipt was therefore not royalty and was not taxable in India under section 9(1)(vi); the treaty could not operate as an independent charging provision. The income was treated as business profit, with article 7 governing and article 22 not applying. On that basis, no tax was required to be withheld on the remittance. Case-Laws Income Tax Fri, 04 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65480