Payments for marketing and distribution rights is taxable royalty : ITAT

By | May 24, 2018
(Last Updated On: May 25, 2018)

Payments for marketing and distribution rights held taxable royalty

The Bangalore Bench of the Income-tax Appellate Tribunal held that payments for marketing and distribution rights of an “adwords” program were taxable as income. Under the adwords program’s distribution and service agreements, the taxpayer was licensed to use certain confidential information, technical know-how, trade mark, brand features, derivative works, etc., but ownership of these intangibles remained with the foreign company. The tribunal found this license was not merely an agreement to provide advertisement space but was a license to be used in facilitating the display and publishing of an advertisement to targeted customers. The case is: Google India Private Ltd. Read a May 2018 report [PDF 610 KB] of KPMG

Related Post

Payment for purchase of software without any copyright is not royalty, No TDS u/s 195

Payment for broadcasting rights of Olympic games isn’t royalty :Federal Court of Australia

Payment for broadcasting of TV programs via transponders isn’t royalty under India-Thailand DTAA

Payment for purchase of software is not royalty/ fees for Technical Services, hence no TDS u/s 195

Income from sale of software not royalty under India-Netherlands income tax treaty

web hosting service by scientific equipment isn’t royalty

Payment for Online access to E learning programs In india is royalty liable for TDS u/s 195

Payment for Using brand name on beer is Royalty liable for TDS u/s 194J

HC quashed Reassessment made to tax Royalty by invoking Force of Attraction Rule

Purchase of software is not payment for royalty, not liable to TDS

Section 80QQB of Income-tax Act :Deduction of royalty income, etc., of authors of certain books other than text-books.

Mining Lease Fee/Royalty

Royalty or Business Profits? Closer look at Australia/India Treaty

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source
New Books Released on Tax , GST and law

2 thoughts on “Payments for marketing and distribution rights is taxable royalty : ITAT

  1. Pingback: Income Tax on Royalty : Free Study Material - Tax Heal

  2. Pingback: New Income Tax News 05.07.2018 - Tax Heal

Leave a Reply

Your email address will not be published. Required fields are marked *