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| The Tax Publishers2019 TaxPub(DT) 3252 (Bom-HC) : (2020) 313 CTR 0102 INCOME TAX ACT, 1961
Section 90
Assessee would receive a part of subscription charges paid by a large number of customers through different agencies. The said subscription charges would enable the customers to view channels operated by assessee. Assessee was thus not parting with any of the copyrights for which payment could be considered as royalty payment in terms of article 12 of Indo-Singapore DTAA. It was especially so when assessee had not created any literary, dramatic, musical or artistic work or cinematograph film and/or a sound recording.
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Double taxation relief - Agreement between India and Singapore - Royalty - Subscription charges received by assessee in the course of operating of TV channels
Assessee, based at Singapore, operated T.V. Channels for exhibition of various programmes, entertainment, educational or otherwise, SET India Private Ltd. through layers of multi system operators and cable operators collected subscription charges to enable individual customers to view the channels and programmes telecast on such channels. The revenue so collected from large number of customers would eventually reach assessee after adjustment of intermediary charges paid to different agencies. AO held that these payments made to assessee were in the nature of royalty for use of copyright.Held: Assessee would receive a part of subscription charges paid by a large number of customers through different agencies. The said subscription charges would enable the customers to view channels operated by assessee. Assessee was, thus, not parting with any of the copyrights for which payment could be considered as royalty payment in terms of article 12 of Indo-Singapore DTAA. It was especially so when assessee had not created any literary, dramatic, musical or artistic work or cinematograph film and/or a sound recording.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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