https://www.taxtmi.com/caselaws?id=204761 A lump sum payment for technical know-how was treated as consideration for an outright transfer of the know-how, not as royalty or fees for technical services. The agreement, read as a whole, showed that the foreign party had to transfer technical information and documents, while the Indian party could assign the agreement, register the patent in its own name, and continue using the know-how after expiry or termination. The separate treatment of lump sum and running royalty payments supported a sale of know-how rather than a mere licence. In the absence of a permanent establishment in India, the receipt was characterised as business profit and held not taxable in India under the treaty. en-us Fri, 29 Oct 2010 00:00:00 +0530 Sat, 25 Aug 2012 11:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204761 A lump sum payment for technical know-how was treated as consideration for an outright transfer of the know-how, not as royalty or fees for technical services. The agreement, read as a whole, showed that the foreign party had to transfer technical information and documents, while the Indian party could assign the agreement, register the patent in its own name, and continue using the know-how after expiry or termination. The separate treatment of lump sum and running royalty payments supported a sale of know-how rather than a mere licence. In the absence of a permanent establishment in India, the receipt was characterised as business profit and held not taxable in India under the treaty. Case-Laws Income Tax Fri, 29 Oct 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204761