Income Tax

📱 CIT (IT) vs. ZTE Corporation – Supreme Court on Non-Taxability of Software Embedded in Telecom Equipment under India–China DTAA (2024) 📌 Background The taxation of payments for software embedded in imported equipment has been a recurring controversy under Section 9(1)(vi) of the Income-tax Act, 1961. The Revenue has often argued that such payments constitute […]

☁️ CIT (IT) vs. MOL Corporation Supreme Court on Non-Taxability of Software Sales and Cloud Subscription Fees under India–USA DTAA (2024) 📌 Background The taxation of software sales and cloud-based subscription services under Indian income tax law has been a recurring issue, particularly regarding their classification as “royalty” under Section 9(1)(vi) of the Income-tax Act, […]

💻 CIT (IT) vs. Microsoft Regional Sales Pte. Ltd – Supreme Court on Software Revenue Not Taxable as Royalty under India–USA DTAA (2024) 📌 Background The characterization of income from the sale of software — whether as “royalty” or “business income” — has long been a critical issue in international taxation. Indian tax authorities have […]

🧾 CIT vs. Infosys Ltd Supreme Court on TDS under Section 206AA vis-à-vis DTAA (2024) 📌 Background Tax Deduction at Source (TDS) under Section 206AA of the Income-tax Act, 1961, mandates deduction at a higher rate (20%) if the deductee fails to furnish a Permanent Account Number (PAN). However, where the payment is made to […]

📡 DCIT v. Vodafone Idea Ltd. (2024) – Supreme Court Upholds: Payments to Non-Resident Telecom Operators Not Taxable as Royalty under Section 9(1)(vi) or India–Belgium DTAA 📘 Background The taxation of cross-border payments for telecommunication bandwidth and interconnectivity services has long been a contentious issue under Section 9(1)(vi) of the Income-tax Act, 1961. In a […]

💾 CIT (IT) v. Gracemac Corporation Golf View Corporate – Supreme Court Affirms: Software Licensing Payments Not Taxable as Royalty under India–USA DTAA (2024) 📘 Background The long-standing debate on whether payments for software licensing or resale of computer software to Indian distributors constitute “royalty” under Section 9(1)(vi) of the Income-tax Act, 1961, and Article […]

💻 CIT (IT) v. Microsoft Regional Sales Pte. Ltd. – Supreme Court Affirms: Software Sales Revenue Not Taxable as Royalty in India (2024) 📘 Background The taxation of software sales under Section 9(1)(vi) of the Income-tax Act, 1961, and Article 12 of various DTAAs has been one of the most litigated issues in Indian international […]

🏦 Little Fairy Ltd. v. ACIT (ITAT Delhi, 2024) – Beneficial Ownership & Taxation of Interest on Compulsorily Convertible Debentures under India–Cyprus DTAA 📘 Background The concept of beneficial ownership plays a crucial role in determining eligibility for DTAA benefits under Article 11 (Interest).In Little Fairy Ltd. v. ACIT (IT) [(2024) 207 ITD 284 (Delhi)(Trib.)], […]

🏦 Johnson Matthey Public Ltd. Co. vs. CIT (IT) – Delhi High Court & Supreme Court on Taxability of Guarantee Fees under India–UK DTAA (2024) 📘 Background The issue of tax characterization of guarantee fees paid by Indian subsidiaries to their foreign parent companies has consistently generated litigation under Section 9(1)(v) of the Income-tax Act, […]