https://www.taxtmi.com/caselaws?id=58603 Payment for supplying technical know-how and permitting its use in India was treated as royalty because the arrangement gave only a limited right to use and exploit the technology, imposed use restrictions, and required continuing technical updates and improvements. The consideration was linked to the Indian company's exploitation of the technology, bringing it within the treaty concept of royalty for use, or the right to use, designs, secret processes, formulae and scientific information. The source of income was the exploitation of the technology in India, so the amount was taxable in India. The absence of a deeming clause found in other treaties did not change that result on these facts. en-us Mon, 24 Apr 1989 00:00:00 +0530 Sun, 06 Feb 2011 03:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58603 Payment for supplying technical know-how and permitting its use in India was treated as royalty because the arrangement gave only a limited right to use and exploit the technology, imposed use restrictions, and required continuing technical updates and improvements. The consideration was linked to the Indian company's exploitation of the technology, bringing it within the treaty concept of royalty for use, or the right to use, designs, secret processes, formulae and scientific information. The source of income was the exploitation of the technology in India, so the amount was taxable in India. The absence of a deeming clause found in other treaties did not change that result on these facts. Case-Laws Income Tax Mon, 24 Apr 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58603