https://www.taxtmi.com/caselaws?id=274487 A reimbursement for data processing charges paid by an Indian branch to its foreign head office was treated as non-royalty under the India-Belgium DTAA because the branch received no independent right to use or exploit the software or copyright. The treaty definition of royalty in Article 12(3)(a) was applied as exhaustive, so the broader domestic expansion of royalty in section 9(1)(vi) could not be imported; accordingly, no tax deduction obligation arose and section 40(a)(i) did not apply. Interest payable by the Indian permanent establishment to its head office and overseas branches was also treated as deductible on the basis of the assessee's consistent prior rulings, with no TDS requirement on that payment. en-us Thu, 20 Oct 2016 00:00:00 +0530 Sat, 18 Aug 2018 09:39:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=274487 A reimbursement for data processing charges paid by an Indian branch to its foreign head office was treated as non-royalty under the India-Belgium DTAA because the branch received no independent right to use or exploit the software or copyright. The treaty definition of royalty in Article 12(3)(a) was applied as exhaustive, so the broader domestic expansion of royalty in section 9(1)(vi) could not be imported; accordingly, no tax deduction obligation arose and section 40(a)(i) did not apply. Interest payable by the Indian permanent establishment to its head office and overseas branches was also treated as deductible on the basis of the assessee's consistent prior rulings, with no TDS requirement on that payment. Case-Laws Income Tax Thu, 20 Oct 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=274487