https://www.taxtmi.com/caselaws?id=59141 A collaboration agreement may create royalty where clause 7(b) payments are expressly described as royalty and are linked to technical know-how, plant design, procurement support, training, development and quality control. Read as a whole, the agreement showed that the payments were consideration for the right to use and exploit technical know-how and allied assistance, rather than a mere fee for isolated services. The treaty meaning of "source" in Article VII was applied to the Indian payer, so the royalty was treated as arising in India. On that construction, the receipts were taxable in India under the India-Sweden Double Taxation Agreement. en-us Fri, 06 Apr 1990 00:00:00 +0530 Sat, 25 Dec 2010 12:18:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59141 A collaboration agreement may create royalty where clause 7(b) payments are expressly described as royalty and are linked to technical know-how, plant design, procurement support, training, development and quality control. Read as a whole, the agreement showed that the payments were consideration for the right to use and exploit technical know-how and allied assistance, rather than a mere fee for isolated services. The treaty meaning of "source" in Article VII was applied to the Indian payer, so the royalty was treated as arising in India. On that construction, the receipts were taxable in India under the India-Sweden Double Taxation Agreement. Case-Laws Income Tax Fri, 06 Apr 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59141