License Fees Taxable as Business Income u/s 9; System Fund Services Not Royalty/FTS, Tribunal Rules.

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....The case pertains to taxability of income in India related to royalty and fees for technical services. The Appellate Tribunal held that license fees received by a company for granting trademark rights are taxable in India as business income u/s 9. The company entered into a Hotel Management Agreement, providing marketing and reservation services. Payments made for System Fund support services and SCHI Facility charges were held not to be Royalty/FTS and hence not taxable. The Tribunal directed the Assessing Officer to verify Travel Agent Commission receipts to determine if they are reimbursement in nature, in line with previous decisions. The Assessee can submit further details to support their claim.....