https://www.taxtmi.com/caselaws?id=214008 Royalty under the DTAA was analysed on a receipt-based footing. For grossing-up, the Tribunal held that "gross amounts" of royalties include the tax borne by the payer on behalf of the recipient, so the treaty rate applies to the grossed-up amount rather than only the net sum received. For unpaid royalty, the Tribunal held that income could not be taxed merely on accrual or book entry basis where the treaty taxed royalties when paid; the accounting method could not override that payment-based treaty rule. The result was that grossing-up was accepted, but royalty not actually paid for the relevant period was not taxable. en-us Fri, 08 Jun 2012 00:00:00 +0530 Thu, 14 Jun 2012 12:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214008 Royalty under the DTAA was analysed on a receipt-based footing. For grossing-up, the Tribunal held that "gross amounts" of royalties include the tax borne by the payer on behalf of the recipient, so the treaty rate applies to the grossed-up amount rather than only the net sum received. For unpaid royalty, the Tribunal held that income could not be taxed merely on accrual or book entry basis where the treaty taxed royalties when paid; the accounting method could not override that payment-based treaty rule. The result was that grossing-up was accepted, but royalty not actually paid for the relevant period was not taxable. Case-Laws Income Tax Fri, 08 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214008