https://www.taxtmi.com/caselaws?id=202825 A technical collaboration agreement that transfers comprehensive know-how, drawings, designs, processes and related information for consideration does not amount to royalty where the treaty definition is confined to payment for the use of, or right to use, specified intellectual property or information. Limited rights to use the technology in existing factories and a conditional sublicensing right did not change the character of the payment into mere use of know-how. The remittances were therefore treated as business profits, and in the absence of a permanent establishment in India, they were not taxable in India and no tax was deductible at source. en-us Thu, 10 Mar 2011 00:00:00 +0530 Mon, 28 Mar 2016 12:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=202825 A technical collaboration agreement that transfers comprehensive know-how, drawings, designs, processes and related information for consideration does not amount to royalty where the treaty definition is confined to payment for the use of, or right to use, specified intellectual property or information. Limited rights to use the technology in existing factories and a conditional sublicensing right did not change the character of the payment into mere use of know-how. The remittances were therefore treated as business profits, and in the absence of a permanent establishment in India, they were not taxable in India and no tax was deductible at source. Case-Laws Income Tax Thu, 10 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202825