https://www.taxtmi.com/highlights?id=83284 The assessee, a resident Indian company engaged in manufacturing boiler pressure parts and engineering plants, paid ocean freight charges to a non-resident Korean logistics company, Hyupjin Shipping Co. Ltd. (HSC), for availing logistics services. The Assessing Officer treated the freight charges as royalty u/s 9(1)(vi) and made disallowances u/s 40(a)(i) for non-deduction of tax at source. The key points are: The freight charges were not royalty as the services did not confer any right to use industrial, commercial or scientific equipment. HSC did not have a permanent establishment or business connection in India, and its profits from logistics services were taxable only in Korea under Article 7 of the India-Korea tax treaty. Section 195 m..... en-us Thu, 21 Nov 2024 09:00:01 +0530 Thu, 21 Nov 2024 09:00:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=83284 The assessee, a resident Indian company engaged in manufacturing boiler pressure parts and engineering plants, paid ocean freight charges to a non-resident Korean logistics company, Hyupjin Shipping Co. Ltd. (HSC), for availing logistics services. The Assessing Officer treated the freight charges as royalty u/s 9(1)(vi) and made disallowances u/s 40(a)(i) for non-deduction of tax at source. The key points are: The freight charges were not royalty as the services did not confer any right to use industrial, commercial or scientific equipment. HSC did not have a permanent establishment or business connection in India, and its profits from logistics services were taxable only in Korea under Article 7 of the India-Korea tax treaty. Section 195 m..... Highlights Income Tax Thu, 21 Nov 2024 09:00:01 +0530 https://www.taxtmi.com/highlights?id=83284