2012 (4) TMI 604

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.... and SETMAX Channels is in the nature of Royalty taxable @ 15% on gross basis under Article 12 of the India-Singapore Double Tax Avoidance Agreement (DTAA) or is business profits. 3. The relevant facts are that Set Satellite (Singapore) Pte. Ltd., is a company registered in Singapore. It is tax resident of Singapore and is entitled to the benefits of DTAA between India and Singapore, hereinabove to be referred in short 'Non-resident company'. The said Non-resident company operates television channels namely SET and SETMAX, hereinabove to be referred as "Channels" in India. The said Non-resident company also canvasses ad-airtime for the said channelS and also entered into agreement for distribution of T.V. channels in India. As per the ag....

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.... and has not given any right to use or exploit any copyright. The assessee is no way concerned whether the programs broadcast by the Non-resident company are copyrighted or not. The said distribution is purely a commercial right, which is distinct from the right to use copyright. We observe that ld CIT(A) has considered the provisions of Section 14 and Section 37 of the Copyright Act, 1957. It is observed that Section 37 of the Copyright Act deals with Broadcast Reproduction Rights (BRR) and same is covered under Section 37 of the Copy Right Act and not under section 14 thereof. We observe that ld CIT(A) has also considered Clause 6.3 of the distribution agreement entered into between assessee company and Non-resident company, which states ....