https://www.taxtmi.com/caselaws?id=256458 A lump sum paid under a technology transfer agreement was treated as royalty because the agreement granted only a non-exclusive right to manufacture, use, maintain and sell the licensed products, while ownership and proprietary rights in the technology and know-how remained with the foreign licensor. Confidentiality obligations, restrictions on disclosure, licensor control over improvements and patents, inspection rights, and reversion on breach showed a licence to use, not an outright transfer of intellectual property. The payment therefore fell within the royalty category under the DTAA and was taxable in India. The court held that the lump sum nature of the payment did not alter its character as royalty. en-us Tue, 03 Feb 2015 00:00:00 +0530 Mon, 01 Dec 2025 10:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=256458 A lump sum paid under a technology transfer agreement was treated as royalty because the agreement granted only a non-exclusive right to manufacture, use, maintain and sell the licensed products, while ownership and proprietary rights in the technology and know-how remained with the foreign licensor. Confidentiality obligations, restrictions on disclosure, licensor control over improvements and patents, inspection rights, and reversion on breach showed a licence to use, not an outright transfer of intellectual property. The payment therefore fell within the royalty category under the DTAA and was taxable in India. The court held that the lump sum nature of the payment did not alter its character as royalty. Case-Laws Income Tax Tue, 03 Feb 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=256458