https://www.taxtmi.com/caselaws?id=426057 Payments to a non-resident university for collaborative research on chemical enhanced oil recovery formulations were analysed under the India-USA DTAA to determine whether they constituted royalty or fees for technical services and attracted TDS under section 195. Applying Article 12, the key test was whether technical knowledge, experience, skill, know-how or processes were made available to the payer so it could use them independently in future. On the stated facts, the arrangement involved sponsored research and field tests, but no transfer of patent rights, copyright or technical know-how enabling independent use. The receipts were therefore not taxable as royalty or fees for technical services under the treaty, and no deduction obligation under section 195 survived. en-us Wed, 03 Aug 2022 00:00:00 +0530 Fri, 05 Aug 2022 21:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=426057 Payments to a non-resident university for collaborative research on chemical enhanced oil recovery formulations were analysed under the India-USA DTAA to determine whether they constituted royalty or fees for technical services and attracted TDS under section 195. Applying Article 12, the key test was whether technical knowledge, experience, skill, know-how or processes were made available to the payer so it could use them independently in future. On the stated facts, the arrangement involved sponsored research and field tests, but no transfer of patent rights, copyright or technical know-how enabling independent use. The receipts were therefore not taxable as royalty or fees for technical services under the treaty, and no deduction obligation under section 195 survived. Case-Laws Income Tax Wed, 03 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=426057