https://www.taxtmi.com/highlights?id=88993 HC held that cloud computing services provided by a US-based company to Indian entities do not constitute royalty or fees for technical services (FTS). The services involve granting non-exclusive, non-transferable access to standard automated cloud infrastructure without transferring any skill, knowledge, technology, or intellectual property rights. Customers merely access standardized services without controlling or commercially exploiting the underlying hardware and software. The payments received are for service usage, not for the right to use scientific equipment or IPR. Consequently, the amounts are not taxable as royalty under the Income Tax Act or the India-US Double Taxation Avoidance Agreement. en-us Mon, 02 Jun 2025 08:34:45 +0530 Mon, 02 Jun 2025 08:34:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=88993 HC held that cloud computing services provided by a US-based company to Indian entities do not constitute royalty or fees for technical services (FTS). The services involve granting non-exclusive, non-transferable access to standard automated cloud infrastructure without transferring any skill, knowledge, technology, or intellectual property rights. Customers merely access standardized services without controlling or commercially exploiting the underlying hardware and software. The payments received are for service usage, not for the right to use scientific equipment or IPR. Consequently, the amounts are not taxable as royalty under the Income Tax Act or the India-US Double Taxation Avoidance Agreement. Highlights Income Tax Mon, 02 Jun 2025 08:34:45 +0530 https://www.taxtmi.com/highlights?id=88993