2019 (8) TMI 61

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....ment of the assesseecompany Majestic Auto Limited with Steyr-Daimler-PUCHAG (PUCH), Austria and Convention for avoidance of double taxation between India and Austria, the Hon'ble Tribunal was right in holding that the sum of Rs. 9,34,579/- paid to Puch was subjected to deduction of tax at source? 2. Whether on the facts and in the circumstances of the case and the material on record, the Appellate Tribunal was right in holding that the consideration pain to Puch for supply of designs, drawings and specifications was nothing but "royalty" and subjected to deduction of tax at source? 3. Whether on the facts and in the circumstances of the case and true interpretation of the documents, the Hon'ble Tribunal was right i....

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.... as per which after the production started the assessee would pay 1% as royalty up to 50,000 vehicles, .75% royalty from 50,000 to 100,000 vehicles and . 5% royalty above more than 100,000 vehicles produced. At this stage, it would be apposite to notice that there is no dispute that on the royalty paid under Clause 2.1, the assessee is liable to deduct tax at source. 4. The dispute in the present case is whether similarly for the payment of 3 million Austrian schilling also the assessee was liable to deduct tax at source? 5. The A.O. held that even for the payment of 3 million Austrian Schilling, the assessee was liable to deduct tax at source since it was in the nature of royalty payment. In an appeal filed by the assessee, the Commi....

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....ghts. May also be applied to payment to performers.' and further in the case titled as State of H.P. v. Raja Mahendra Pal, 1999 (4) SCC 43 as "a payment reserved by the grantor of a patent, lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee, which shall on payment of money, but may be a payment in kind being the part of the produce of the exercise of the right.' (excerpts taken from the Supreme Court on Words, Phrases and Legal Expressions (Judicially defined) 1950- 2015 Volume III. 8. Word 'Royalty' has been defined in Oxford Advanced Learner's Dictionary (New 9th Edition) as 'a sum of money that is paid by an oil or mining company to the owner of the land th....