Table of Contents
Payment made for official sponsor / promotion objective is not consider royalty: ITAT
Assessee had been taken an appointed as the official sponsor of ICC Events, after that said assessee submit an application to remit professional sponsorship amounts to Global Cricket Corporation PTE Ltd. – Singapore (GCC) without deduction of TDS in India, claiming no PE in India for Global Cricket Corporation PTE Ltd. – Singapore (GCC).
When matter reached with ITAT than ITAT observed that Official Sponsorship Agreement, emphasized Non-exclusive rights granted to Income tax assessee for using footage, Event Marks & still images.
The question is whether the said payment for official sponsor of ICC Events would be taxable as royalty U/S 9(1)(vi) of the Income Tax Act?
Held that in case any kind of payment made towards promotion purposes is not been considered as royalty and said payment not made for the purpose of use of trademark & brand. Than ITAT Mumbai bench made the decision that said payment not covered as royalty defined under the income Tax Act or signed DTAA agreement between India-Singapore DTAA. Thus, we are of the view that the question of law has to be answered in favour of the assessee & against the Revenue.
Complete ITAT Mumvbai details attached Link :
