https://www.taxtmi.com/caselaws?id=75811 A genuine cost-sharing or pooling arrangement that merely reimburses shared research and development expenses, without managerial, technical or consultancy services or a right to use intellectual property, is not taxable in India as royalty or fees for technical services; in the absence of a permanent establishment, it is also not business income under the treaty. No withholding obligation arises under section 195 on such non-chargeable cost contribution payments. A separately identifiable coordination fee remains taxable, and the use of a single invoice does not change its character or the withholding obligation on that component. The arm's length nature of the contribution was left open for examination in appropriate proceedings. en-us Mon, 15 Mar 2010 00:00:00 +0530 Thu, 31 Jan 2013 10:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75811 A genuine cost-sharing or pooling arrangement that merely reimburses shared research and development expenses, without managerial, technical or consultancy services or a right to use intellectual property, is not taxable in India as royalty or fees for technical services; in the absence of a permanent establishment, it is also not business income under the treaty. No withholding obligation arises under section 195 on such non-chargeable cost contribution payments. A separately identifiable coordination fee remains taxable, and the use of a single invoice does not change its character or the withholding obligation on that component. The arm's length nature of the contribution was left open for examination in appropriate proceedings. Case-Laws Income Tax Mon, 15 Mar 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75811