https://www.taxtmi.com/caselaws?id=770357 Royalty taxability of transponder-service payments under the Income-tax Act and Article 12(3) of the India-USA DTAA could not be finally determined because the agreement and the exact nature of the services had not been examined, and there were no foundational findings on the foreign payee's permanent establishment in India; the issue was remanded for fresh factual determination. For payments made before the Finance Act, 2012, withholding tax could not be imposed merely on the basis of the retrospective insertion of Explanation 6 to section 9(1)(vi); the appellate authority had to verify the payment dates and apply the law then in force. The merits of royalty taxability were left open. en-us Thu, 08 May 2025 00:00:00 +0530 Fri, 09 May 2025 13:03:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770357 Royalty taxability of transponder-service payments under the Income-tax Act and Article 12(3) of the India-USA DTAA could not be finally determined because the agreement and the exact nature of the services had not been examined, and there were no foundational findings on the foreign payee's permanent establishment in India; the issue was remanded for fresh factual determination. For payments made before the Finance Act, 2012, withholding tax could not be imposed merely on the basis of the retrospective insertion of Explanation 6 to section 9(1)(vi); the appellate authority had to verify the payment dates and apply the law then in force. The merits of royalty taxability were left open. Case-Laws Income Tax Thu, 08 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770357