Topic

Business Profits

2 articlesLatest April 2026
DTAA Article 12 | 'Make Available' Clause Mandatory for Royalty/FTS Classification of Telecom Services : ITAT Mumbai
Case Law Analysis
|Income Tax Appellate Tribunal

DTAA Article 12 | 'Make Available' Clause Mandatory for Royalty/FTS Classification of Telecom Services : ITAT Mumbai

ITAT Mumbai rules that payments for voice termination and bandwidth services do not qualify as royalty or fees for technical services under India-Singapore/US DTAA unless the 'make available' clause is satisfied. The ruling clarifies that business profits taxability hinges on the absence of a permanent establishment, shielding foreign telecom providers from double taxation.

DTAA Royalty Exclusion | Software Licensing Without Copyright Transfer Not Taxable as Royalty or FTS : ITAT Bangalore Affirms Engineering Analysis Precedent
Case Law Analysis
|Income Tax Appellate Tribunal

DTAA Royalty Exclusion | Software Licensing Without Copyright Transfer Not Taxable as Royalty or FTS : ITAT Bangalore Affirms Engineering Analysis Precedent

ITAT Bangalore holds that software licensing fees without transfer of copyright or source code do not constitute 'royalty' or 'fees for technical services' under the Indo-Swiss DTAA, aligning with the Supreme Court's Engineering Analysis ruling. This decision reinforces the distinction between business profits and taxable royalty, impacting multinational software vendors and tax authorities.

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