https://www.taxtmi.com/caselaws?id=59729 Consideration for a tailor-made basic engineering design package and limited know-how licence was treated as payment for creating a plant asset, not as royalty for use of copyright, patent, design, secret process or similar protected rights. The contractual structure and the absence of linkage to actual use showed that the payment did not fall within royalty characterisation. Because the related services were not rendered in India and no permanent establishment in India was shown for the recipient, the amount was not taxable in India. On that basis, the payer had no obligation to deduct tax at source under section 195. en-us Wed, 29 Jul 2009 00:00:00 +0530 Sat, 28 Jul 2012 11:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59729 Consideration for a tailor-made basic engineering design package and limited know-how licence was treated as payment for creating a plant asset, not as royalty for use of copyright, patent, design, secret process or similar protected rights. The contractual structure and the absence of linkage to actual use showed that the payment did not fall within royalty characterisation. Because the related services were not rendered in India and no permanent establishment in India was shown for the recipient, the amount was not taxable in India. On that basis, the payer had no obligation to deduct tax at source under section 195. Case-Laws Income Tax Wed, 29 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59729