https://www.taxtmi.com/caselaws?id=270242 Consideration for access to internet, email and networking facilities through an embedded software-based gateway was treated as royalty because the payment was for use of a facility built around secret software, not a mere passive connectivity service. Applying the India-USA DTAA definition, the Tribunal held that the arrangement involved consideration for the use of, or the right to use, a secret formula, process or similar intellectual property. The transponder ruling was distinguished on facts, while the advance ruling on centralized computer systems and secret software was followed. The receipt was taxable in India as royalty under section 9(1)(vi) and Article 12(3). en-us Wed, 30 Sep 2015 00:00:00 +0530 Fri, 01 Jan 2016 13:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=270242 Consideration for access to internet, email and networking facilities through an embedded software-based gateway was treated as royalty because the payment was for use of a facility built around secret software, not a mere passive connectivity service. Applying the India-USA DTAA definition, the Tribunal held that the arrangement involved consideration for the use of, or the right to use, a secret formula, process or similar intellectual property. The transponder ruling was distinguished on facts, while the advance ruling on centralized computer systems and secret software was followed. The receipt was taxable in India as royalty under section 9(1)(vi) and Article 12(3). Case-Laws Income Tax Wed, 30 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=270242