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The Tax Publishers Hindustan Petroleum Corporation Ltd. v. ADIT [ITA No. 7678, 7679, 7680 & 7681/Mum/2007, dt. 30-3-2016] : 2016 TaxPub(DT) 1696 (Mum-Trib) Sale of Basic engineering design specification (BEDS) whether subject to TDS as royalty/FTS *Facts:* Assessee PSU had to pay USD 10,70,000 alongside other royalty and training as well to a US entity. The said payment was for customized design specifications and sale of the drawings of an upcoming plant at Vizag. On application for nil deduction of TDS the assessing officer held it as FTS and taxable also confirmed by the Commissioner (Appeals). On further appeal: Held by the ITAT in favour of the assessee that the sale of BEDS was not royalty/FTS it was qua sale of property thus business income outside the scope of TDS in the absence of a PE.

The Tax Publishers

Hindustan Petroleum Corporation Ltd. v. ADIT [ITA No. 7678, 7679, 7680 & 7681/Mum/2007, dt. 30-3-2016] : 2016 TaxPub(DT) 1696 (Mum-Trib)

Sale of Basic engineering design specification (BEDS) whether subject to TDS as royalty/FTS

Facts:

Assessee PSU had to pay USD 10,70,000 alongside other royalty and training as well to a US entity. The said payment was for customized design specifications and sale of the drawings of an upcoming plant at Vizag. On application for nil deduction of TDS the assessing officer held it as FTS and taxable also confirmed by the Commissioner (Appeals). On further appeal:

Held by the ITAT in favour of the assessee that the sale of BEDS was not royalty/FTS it was qua sale of property thus business income outside the scope of TDS in the absence of a PE.