https://www.taxtmi.com/caselaws?id=252727 Amounts routed to a Canadian parent for engineering services were not treated as mere cost reimbursement where the commercial arrangement showed the parent procured or rendered services for consideration; the payment was therefore chargeable in India as fee for included services and attracted withholding tax. The assessee's software licence cross-charge was accepted as genuine, and the ad hoc restriction to 50% was deleted because there was no factual basis for splitting a proven licence cost. The separate question whether the software licence payment constituted royalty was not finally decided and was remanded for fresh examination of the underlying agreements and rights transferred. en-us Wed, 22 Oct 2014 00:00:00 +0530 Tue, 18 Aug 2015 15:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252727 Amounts routed to a Canadian parent for engineering services were not treated as mere cost reimbursement where the commercial arrangement showed the parent procured or rendered services for consideration; the payment was therefore chargeable in India as fee for included services and attracted withholding tax. The assessee's software licence cross-charge was accepted as genuine, and the ad hoc restriction to 50% was deleted because there was no factual basis for splitting a proven licence cost. The separate question whether the software licence payment constituted royalty was not finally decided and was remanded for fresh examination of the underlying agreements and rights transferred. Case-Laws Income Tax Wed, 22 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252727