https://www.taxtmi.com/caselaws?id=211143 Lump-sum consideration for technical know-how was treated as royalty, not a capital receipt, where the transferor retained ownership and granted only a limited right to use the know-how for a specified period. The restrictive terms requiring secrecy and limiting disclosure showed that there was no outright transfer of the underlying asset. On that basis, the payment fell within the treaty concept of royalty for the right to use know-how and was also taxable in India under the Income-tax Act, 1961. The questions were answered in favour of the Revenue. en-us Mon, 09 Jan 2012 00:00:00 +0530 Tue, 06 Mar 2012 10:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211143 Lump-sum consideration for technical know-how was treated as royalty, not a capital receipt, where the transferor retained ownership and granted only a limited right to use the know-how for a specified period. The restrictive terms requiring secrecy and limiting disclosure showed that there was no outright transfer of the underlying asset. On that basis, the payment fell within the treaty concept of royalty for the right to use know-how and was also taxable in India under the Income-tax Act, 1961. The questions were answered in favour of the Revenue. Case-Laws Income Tax Mon, 09 Jan 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211143