India: Payments for database access not taxable under U.S. tax treaty

The KPMG member firm in India has prepared reports on recent tax developments

The KPMG member firm in India has prepared reports on recent tax developments

The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).

  • No tax on database access under India-United States income tax treaty: The Delhi Bench of the Income-tax Appellate Tribunal held that a payment that a U.S. entity received from India in exchange for providing database access was not taxable as a royalty under provisions of the India-United States income tax treaty because the database access services did not result into transfer of a copyright. The case is: Dow Jones & Company Inc. Read a December 2021 report [PDF 312 KB]

  • Reassessment proceedings: The Delhi High Court quashed reassessment notices issued after 31 March 2021 under prior reassessment provisions. The Finance Act, 2021 introduced new reassessment provisions that were effective 1 April 2021.  The High Court held that the reassessment notices issued between April to June 2021 had applied the former rules and therefore were invalid. The case is: Mon Mohan Kohli. Read a December 2021 report [PDF 367 KB]


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