https://www.taxtmi.com/caselaws?id=177820 Under the India-Italy tax treaty, the specific treaty definition of royalty prevailed over the wider domestic definition because the DTAA was more beneficial. Lump sum payments for technical know-how and basic process engineering documentation were treated as consideration for supply of know-how and documentation for setting up the plant, not as payment for mere use of the process. The recurring payment was separately linked to process use. As the non-resident recipient had no permanent establishment in India, the lump sum receipts were treated as business profits under the treaty and not taxable in India as royalty. en-us Tue, 12 Jan 1999 00:00:00 +0530 Tue, 19 Jan 2016 18:42:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177820 Under the India-Italy tax treaty, the specific treaty definition of royalty prevailed over the wider domestic definition because the DTAA was more beneficial. Lump sum payments for technical know-how and basic process engineering documentation were treated as consideration for supply of know-how and documentation for setting up the plant, not as payment for mere use of the process. The recurring payment was separately linked to process use. As the non-resident recipient had no permanent establishment in India, the lump sum receipts were treated as business profits under the treaty and not taxable in India as royalty. Case-Laws Income Tax Tue, 12 Jan 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177820