https://www.taxtmi.com/caselaws?id=25072 Payments under a collaboration agreement for supply of confidential data, assistance and information on working methods and manufacturing processes were treated as royalty where the know-how was exclusive, secret and for the Indian company's limited use. The court stated that royalty is not confined to consideration under a formal patent licence; it can extend to payment for the use of exclusive rights or secret business know-how having the character of a capital asset. Contractual labels and the method of computation were not decisive. On these facts, the amount attributable to manufacturing know-how was royalty, not technical service fees, in favour of the Revenue. en-us Wed, 06 May 1987 00:00:00 +0530 Mon, 25 Jan 2010 11:55:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25072 Payments under a collaboration agreement for supply of confidential data, assistance and information on working methods and manufacturing processes were treated as royalty where the know-how was exclusive, secret and for the Indian company's limited use. The court stated that royalty is not confined to consideration under a formal patent licence; it can extend to payment for the use of exclusive rights or secret business know-how having the character of a capital asset. Contractual labels and the method of computation were not decisive. On these facts, the amount attributable to manufacturing know-how was royalty, not technical service fees, in favour of the Revenue. Case-Laws Income Tax Wed, 06 May 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25072