https://www.taxtmi.com/caselaws?id=60504 A collaboration agreement that separately bifurcated consideration for outright transfer of technical know-how and recurring royalty for use of that know-how was construed under the India-France DTAA as excluding the lump sum from royalty. The lump sum was treated as commercial profit, because it was paid for transfer of know-how abroad rather than for its use, and therefore was not taxable in India under the treaty. The alternative argument that part of the payment constituted fee for technical services was rejected, since apportionment was impermissible where the agreement itself allocated the consideration separately. The tax deducted at source was refundable. en-us Sat, 12 Sep 1992 00:00:00 +0530 Wed, 05 Jan 2011 16:15:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60504 A collaboration agreement that separately bifurcated consideration for outright transfer of technical know-how and recurring royalty for use of that know-how was construed under the India-France DTAA as excluding the lump sum from royalty. The lump sum was treated as commercial profit, because it was paid for transfer of know-how abroad rather than for its use, and therefore was not taxable in India under the treaty. The alternative argument that part of the payment constituted fee for technical services was rejected, since apportionment was impermissible where the agreement itself allocated the consideration separately. The tax deducted at source was refundable. Case-Laws Income Tax Sat, 12 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60504