https://www.taxtmi.com/caselaws?id=325927 Payment for outright acquisition of basic engineering design documentation to set up a plant was treated as a capital asset acquisition, not as royalty or fees for technical services. The design supply arrangement was held distinct from the separate licence and technology collaboration payments, so the design fee could not be taxed as consideration for use of rights or technical services. As the work was performed India and no taxable nexus in India or permanent establishment connection was found for that payment, no obligation to deduct tax at source arose under section 195(2). The appeals succeeded and the orders taxing the design payments were set aside. en-us Wed, 30 Mar 2016 00:00:00 +0530 Thu, 31 Mar 2016 17:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325927 Payment for outright acquisition of basic engineering design documentation to set up a plant was treated as a capital asset acquisition, not as royalty or fees for technical services. The design supply arrangement was held distinct from the separate licence and technology collaboration payments, so the design fee could not be taxed as consideration for use of rights or technical services. As the work was performed India and no taxable nexus in India or permanent establishment connection was found for that payment, no obligation to deduct tax at source arose under section 195(2). The appeals succeeded and the orders taxing the design payments were set aside. Case-Laws Income Tax Wed, 30 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325927