https://www.taxtmi.com/caselaws?id=67617 Under the India-Italy DTAA, the treaty definition of royalty prevailed over the wider domestic definition in section 9(1)(vi), and the lump sum payments were examined by reference to whether they were consideration for use of a process or for supply of technical know-how and engineering documentation. On the contract terms, the lump sums related to supply of know-how and basic process engineering documentation for setting up the plant, while the running royalty alone was linked to use of the process. As the Italian recipient had no permanent establishment in India, the lump sum receipts were treated as business profits under Article 7 and not taxable as royalty under Article 13. en-us Fri, 30 Oct 1998 00:00:00 +0530 Wed, 17 May 2017 12:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=67617 Under the India-Italy DTAA, the treaty definition of royalty prevailed over the wider domestic definition in section 9(1)(vi), and the lump sum payments were examined by reference to whether they were consideration for use of a process or for supply of technical know-how and engineering documentation. On the contract terms, the lump sums related to supply of know-how and basic process engineering documentation for setting up the plant, while the running royalty alone was linked to use of the process. As the Italian recipient had no permanent establishment in India, the lump sum receipts were treated as business profits under Article 7 and not taxable as royalty under Article 13. Case-Laws Income Tax Fri, 30 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=67617