https://www.taxtmi.com/caselaws?id=412507 Online advertisement payments made to a non-resident Facebook entity were analysed under the Income-tax Act and the applicable treaty and were treated as not constituting royalty. The arrangement provided only an enabling facility for placing advertisements and did not confer any right to use or exploit copyright, software, or any similar proprietary interest. On that basis, the sums were not chargeable to tax in India as royalty, so no obligation to deduct tax at source arose under section 195. Consequently, the payer could not be treated as an assessee in default under section 201(1), and interest under section 201(1A) was not attracted. en-us Fri, 03 Sep 2021 00:00:00 +0530 Mon, 20 Sep 2021 09:21:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=412507 Online advertisement payments made to a non-resident Facebook entity were analysed under the Income-tax Act and the applicable treaty and were treated as not constituting royalty. The arrangement provided only an enabling facility for placing advertisements and did not confer any right to use or exploit copyright, software, or any similar proprietary interest. On that basis, the sums were not chargeable to tax in India as royalty, so no obligation to deduct tax at source arose under section 195. Consequently, the payer could not be treated as an assessee in default under section 201(1), and interest under section 201(1A) was not attracted. Case-Laws Income Tax Fri, 03 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=412507