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Tax Publishers Resellling IT licences and servicing/supporting the same post sale thru Indian AE entity - Payment receipts in the hands of the Dutch parent company whether royalty/FTS under Indo-Dutch DTAA - Article 12 *Facts:* Assessee was the Dutch parent of the Indian AE who were into reselling IT licences, networking equipments. The Indian entity was servicing and rendering after sales support on call/ticketing basis to the assessee parent. The Dutch parent was in receipt of monies from channel partners, resellers, distributors for its networking/software equipments/end user licences sold. Revenue's plea was that these were royalty and FTS taxable as per the Indo-Dutch DTAA Article - 12. Assessee's plea was that there was nothing that was "made available" in the process of the licences/networking. CIT(A) concurred with the assessee and dropped the additions. On appeal by revenue for three consecutive asst. years to the ITAT - Held against the revenue that the resale of networking, licences etc. were not royalty/FTS as per Indo-Dutch DTAA Article 12. A detailed discussion was also made to examine if these were copyrights taxable under the DTAA and it was confirmed that the said rights were also not copyrights. *Applied:* Murex Southeast Asia Pvt. Ltd. v. DCIT [ITA No.2338/Mum/2022, dt. 08-05-2023] Amazon Web Services Inc. v. ACIT [ITA Nos. 522 & 523/Del/2023, dt. 01-08-2023] : 2023 TaxPub(DT) 4738 (Del-Trib) DDIT v. Reliance Industries Limited (2016) 69 taxmann.com 311 (Mumbai-Trib) : 2016 TaxPub(DT) 2745 (Mum-Trib) Raymond Ltd v. DCIT (2003) 86 ITD 791 (Mum-Trib) : 2003 TaxPub(DT) 0237 (Mum-Trib) CIT v. De Beers India Minerals Private Limited (2012) 346 1TR 467 (Kamataka-HC) : 2012 TaxPub(DT) 2504 (Karn-HC) DDIT v. Preroy A.G (2010) 39 SOT 187 (Mumbai-Trib) : 2010 TaxPub(DT) 1836 (Mum-Trib) *Case:* Asstt. CIT v. Juniper Networks International B.V. 2023 TaxPub(DT) 6105 (Mum-Trib)

Tax Publishers

Resellling IT licences and servicing/supporting the same post sale thru Indian AE entity - Payment receipts in the hands of the Dutch parent company whether royalty/FTS under Indo-Dutch DTAA - Article 12

Facts:

Assessee was the Dutch parent of the Indian AE who were into reselling IT licences, networking equipments. The Indian entity was servicing and rendering after sales support on call/ticketing basis to the assessee parent. The Dutch parent was in receipt of monies from channel partners, resellers, distributors for its networking/software equipments/end user licences sold. Revenue's plea was that these were royalty and FTS taxable as per the Indo-Dutch DTAA Article - 12. Assessee's plea was that there was nothing that was "made available" in the process of the licences/networking. CIT(A) concurred with the assessee and dropped the additions. On appeal by revenue for three consecutive asst. years to the ITAT -

Held against the revenue that the resale of networking, licences etc. were not royalty/FTS as per Indo-Dutch DTAA Article 12. A detailed discussion was also made to examine if these were copyrights taxable under the DTAA and it was confirmed that the said rights were also not copyrights.

Applied:

Murex Southeast Asia Pvt. Ltd. v. DCIT [ITA No.2338/Mum/2022, dt. 08-05-2023]

Amazon Web Services Inc. v. ACIT [ITA Nos. 522 & 523/Del/2023, dt. 01-08-2023] : 2023 TaxPub(DT) 4738 (Del-Trib)

DDIT v. Reliance Industries Limited (2016) 69 taxmann.com 311 (Mumbai-Trib) : 2016 TaxPub(DT) 2745 (Mum-Trib)

Raymond Ltd v. DCIT (2003) 86 ITD 791 (Mum-Trib) : 2003 TaxPub(DT) 0237 (Mum-Trib)

CIT v. De Beers India Minerals Private Limited (2012) 346 1TR 467 (Kamataka-HC) : 2012 TaxPub(DT) 2504 (Karn-HC)

DDIT v. Preroy A.G (2010) 39 SOT 187 (Mumbai-Trib) : 2010 TaxPub(DT) 1836 (Mum-Trib)

Case: Asstt. CIT v. Juniper Networks International B.V. 2023 TaxPub(DT) 6105 (Mum-Trib)