Key Takeaways Analysis of definitions in Income tax act and treaties Taxability under the act and treaties IRoyalty vs. Business income Illustrative Cases Judicial Precedents

1. What falls within the ambit
of Royalty?
CA Jugal Gala

2. Research Credits
Anand N Krishna
2

3. Legends Used
DTAA Double Taxation Avoidance Agreement
MTC Model Tax Convention
OECD Organisation for Economic Cooperation and Development
PE Permanent Establishment
TDS Tax Deducted at Source
UN United Nations
The Act refers to the Income-Tax Act, 1961

4. Presentation Schema
4
Overview
Royalty Deemed
to Accrue or Arise
in India
Definitions under
the Act
Taxability under
the Act
Definition under
the Treaties
Taxability under
the Treaties
Taxability under
the Treaties
Royalty vs.
Business Income
Illustrations Illustrative Cases
Judicial
Precedents

5. Introduction
5

6. 6
Royalty, as commonly understood, is the fee paid for use of or right to use certain types of
Intellectual properties belonging to another
The use of royalties is common in situations where an inventor or original owner chooses to
sell his product to a third party in exchange for royalties from the future revenues it may
generate
There has been a lot of ambiguity in determining what falls within the ambit of the term
“royalty”
This webinar shall discuss the provisions relating to analysing the term “royalty” and its taxability
Overview

7. 7
Royalty Deemed to Accrue or Arise in India – Sec 9(1)(vi)
Royalty income is deemed to accrue or arise in India in the following situations:
Where the royalty is payable by the government to the non-resident recipient
Where the royalty is payable by a resident to the non-resident recipient,
• except –
• where the royalty is payable in respect of any right, property or information used or services utilized
for the purposes of business or profession carried on by such person (i.e., the payer) outside India;
or
• for the purpose of making or earning any income from any source outside India
Where the royalty is payable by a non-resident to the non-resident recipient,
• only if –
• the royalty is payable in respect of any right, property or information used or services utilized for the
purposes of a business or profession carried on by such person in India, or
• for the purpose of making or earning any income from any source in India

8. 8
Exclusions
The following payments are excluded from the deeming provisions
Royalty payable under an agreement approved by the Central Government, if –
the agreement is made before 1st April, 1976;
for the transfer outside India of, or the imparting of information outside India;
in respect of, any data, documentation, drawing or specification relating to any patent,
invention, model, design, secret formula or process or trade mark or similar property; and
the royalty payable is a lump sum consideration.
Royalty payable in respect of computer software, if –
lump sum payment is made by a resident
for transfer of all or any rights (including granting of a license) relating to computer software
supplied along with a computer or computer-based equipment
by a non-resident manufacturer
under any scheme approved under the Policy on Computer Software Export, Software
Development and Training, 1986 of the Government of India.

9. Definitions under the Act
9

10. 10
Explanation 2 to Sec 9(1)(vi)
Consideration,
including
lumpsum
consideration
(other than
income
chargeable as
capital gains)
for
Royalty also includes income from rendering of services in connection with above
Transfer of all or any rights (including the
granting of a license) in respect of
Patent, invention, model, design,
secret formula or process or
trademark or similar property
Technical, industrial, commercial or
scientific knowledge, experience or skill
Imparting of any information concerning
the working of, or the use of
Use of
Imparting of any information concerning
Use or right to use
Transfer of all or any rights (including
the granting of a license) in respect of
Any industrial, commercial or scientific
equipment (excluding section 44BB –
extraction of minerals oils)
Copyright, literary, artistic or scientific
work (including* sale, distribution or
exhibition of cinematographic films)
* Amendment vide Finance Act, 2020

11. 11
Other Relevant Explanations
Retrospective amendments by Finance Act, 2012 - Explanations added to Section 9(1)(iv) of the Act
Royalty includes and has always included consideration in respect of any right, property
or information, whether or not—
(a) the possession or control of such right, property or information is with the payer;
(b) such right, property or information is used directly by the payer;
(c) the location of such right, property or information is in India
Explanation 3
“Computer software” means any computer programme recorded on any disc / tape /
perforated media / other information storage device and includes any such programme
or any customized electronic data
Explanation 4
Explanation 5
Explanation 6
“Process" includes and shall be deemed to have always included transmission by satellite
(including up-linking, amplification, conversion for down-linking of any signal), cable, optic
fibre or by any other similar technology, whether or not such process is secret
Transfer of all or any rights in respect of any right, property or information includes and
has always included transfer of all or any right for use or right to use a computer
software (including granting of a licence) irrespective of the medium through which
such right is transferred
Retrospective Amendments were made to nullify various rulings
involving interpretations pertaining to the definition of royalty

12. Taxability under the Act
12
The Act prescribes the methodology for computing income under the
head “royalty”. The same would vary depending on whether the non-
resident has a PE / fixed place of profession in India or not

13. 13
Sec 115A of the Act
 Where the non-resident does not have a PE / fixed place of profession in India to which the royalty
income is effectively connected.
 In such a scenario, the royalty would be taxable on gross basis (i.e., without allowing any deduction for
expenses incurred)
 The applicable tax rates would be 10% plus applicable surcharge and cess

14. 14
Sec 44DA of the Act
 Where the non-resident has a PE / fixed place of profession in India to which the royalty income is effectively
connected and
 Royalty received by a non-resident from the Government / Indian concern under agreements entered after
31st March, 2003 and effectively connected to a PE / fixed place of profession in India, would be computed
under the head “business income”.
 Accordingly, income would be arrived at after reducing permissible expenses as per provisions of the Act (Sec
28 to 44C).
 In computing this income, deduction shall not be allowed for –
- Expenditure which is not wholly and exclusively incurred for the business of the PE / fixed place of profession
in India; or
- Amount paid by the PE to its head office / any of its other offices (other than actual reimbursement of
expenses)
 Further, the non-resident would be required to compulsorily maintain books of accounts as per Sec 44AA of
the Act and get the accounts audited (Form 3CE).
 The tax rate applicable under Sec 44DA of the Act is 40% (plus applicable surcharge and education cess).
 Further, if the above mentioned royalty is received from a non-resident (i.e., not from the Government or an
Indian concern), the applicable tax rate would be 40% (plus applicable surcharge and education cess) as per
Sec 28 of the Act.
 However, in such a scenario, the benefit of net basis of taxation would be available (allowability of
deduction for expenses)

15. 15
Concept of Effectively Connected
Effective connection of royalties with a PE has to be evaluated by applying the “asset
test”,
Asset test is based on the location of the IPR or the asset on which royalty is paid

16. 16
Withholding of Tax – Sec 195
Particulars Rate of TDS
Income from royalty payable by the Government or an Indian concern 10%
In other cases 40%
Sec 195 – Tax Deducted at Source (TDS) on payment of other sums to Non-Residents
Sec 195 requires deduction of tax on any payments to non-residents which is
chargeable to tax under the Act
Even a non-resident making a payment to non-resident shall deduct tax if the
payment would constitute income chargeable to tax under the Act for the recipient
Deduction shall be made at the rates in force
Rates in force – rate of TDS as per Finance Act or rate as per relevant DTAA whichever is lower

17. Definitions under the Treaties
17

18. 18
Article 12 of UN MTC
Royalties arising in a contracting state and paid to a resident of the other
contracting state may be taxed in the other state
Article 12(1)
Article 12(2)
Article 12(3)
Article 12(4)
• Such Royalties may also be taxed in the state in which they arise and
according to the laws of that state.
• But if the beneficial owner of royalty is a resident of the other contracting
state, the tax so charged shall not exceed the percentage established
through bilateral negotiations of the gross amount of royalty (treaty rate)
Meaning of the term Royalty
Provisions of the Article not to apply in case the beneficial owner of royalties being a
resident of a contracting state:
• carries on business in the other contracting state in which royalties arise through a
Permanent Establishment (PE) situated therein, or;
• performs in that other state independent personal services from a fixed base situated
therein
and, the right or property in respect of which royalty is paid is effectively connected with :
• such PE or fixed base, or with
• business activities referred to In Article 7 (Business Profits) or
• Activities referred in Article 14 (Independent Personal Services)

19. 19
Article 12 of UN MTC
Royalty shall be deemed to accrue or arise as under:
o Where the payer is a resident of a contracting state - in that state
o Where the payer (irrespective of his residence) has a PE in the other contracting state
in connection with which liability to pay royalty was incurred, and such royalty is borne
by such PE - in the state where PE or fixed base is situated.
Where by reason of a special relationship between:
o Payer and beneficial owner
o Payer, beneficial owner and some other person
the payment of royalty exceeds than what would have been paid in absence of such
relationship, then the provisions of this Article shall apply only to the extent of amount
which is not in excess.
The excess amount shall be taxable as per the laws of the respective contracting states
Article 12(5)
Article 12(6)

20. 20
To Summarise
Para 6 provides for adjustment of an amount which is in excess of arm’s length principle
Para 5 provides for the circumstances where royalty shall be deemed to accrue or arise in a contracting state.
Para 4 provides an exception with respect to that royalty which is in connection with a PE to which article 7 or 14 applies.
Para 3 defines the term royalties.
Para 2 entitles the state of source to tax income only to limited extent of withholding some percent of gross amount as tax.
Para 1 outlines the basic rule that royalties may be taxed in the state of residence.
Royalties may be taxed both, in the country of which the recipient is a resident and in the country in which it arises

21. 21
Concept of Beneficial Ownership
• Article 12 provides that such income shall be taxed in that state of
which the beneficial owner of the income is resident.
• The concept of ‘beneficial ownership’ is also used to grant the benefit of
reduced treaty taxes
• The concept of ‘beneficial ownership’ is one of the safeguards provided in the
DTAA’s to prevent treaty shopping and is applicable in situation where the source of
income is in one country and the recipient of certain incomes is in other country.
• This concept of beneficial ownership is not only applicable to Royalty / FTS, but also
applies to Interest and dividend income.
The term ‘beneficial owner/ownership’ is not defined in the DTAAs’.
Prof Klaus Vogel has explained the same as:
“The ‘beneficial owner’ is he who is “free to decide-
i. Whether or not capital assets should be used or made available for use by others; or
ii. How the yields there from should be used; or
iii. Both.”

22. 22
Definition of Royalty under UN MTC
UN Model Convention
The term ‘royalties’ as used in this Article means
Payments of any kind received as a consideration
for the use of, or the right to use,
any copyright of literary, artistic, or scientific work, including cinematograph films, or films or
tapes used for radio or television broadcasting, any patent, trade mark, design or model, plan,
secret formula or process,
or for the use of, or the right to use, industrial, commercial or scientific equipment,
or for information concerning industrial, commercial or scientific experience

23. Exclusions
•Consideration for after-sales service
•Services rendered by a seller to the purchaser under a
warranty
•Pure technical assistance
•A list of potential customers, when such a list is developed
specifically for the payer out of generally available
information
•An opinion given by an engineer, an advocate or an
accountant
•Advice provided electronically, for electronic
communications with technicians or for accessing, through
computer networks, a troubleshooting database
Payments which should not
be considered as
consideration for the
provision of know-how but,
rather, for the provision of
services, include:

24. Taxability under the Treaties
24

25. 25
Taxability of Royalty under DTAA
The applicable article of the DTAA (i.e., Article 12 / 13 in most cases) would
generally prescribe a rate for taxability of royalty covered within its fold
If royalty not attributable to a PE in India
of the non-resident recipient
Would be taxable on gross basis (as
per relevant provisions of the DTAA)
Most DTAAs India has entered into provide
for a tax rate in the range of 10-15%
In such a scenario, the assessee has an option to apply
the tax rate prescribed in the applicable DTAA or
section 115A of the Act, whichever is more beneficial
In a situation where the royalty is attributable
to a PE in India of the non-resident
The income liable to tax would be computed on net basis as per
relevant Articles of the DTAA (i.e., Article 5 {dealing with PE}
read with Article 7 {dealing with Business Profits} in most cases)
The tax rate applicable in such a scenario would be
40% (plus applicable surcharge and education cess).
Determination of profits attributable to a PE in India
is a complex exercise. A detailed FAR Analysis
(functions performed, assets used and risk assumed)
would have to be conducted in this regard

26. 26
Royalty vs Business Income
In this context, it must be noted that if the following conditions are satisfied, the
royalty shall be taxed as business profits in Article 7 and not in Article 12:
• This aspect is typically dealt with in Article 12(4) of the UN Model – if royalty is effectively
connected to a PE of the recipient, then it shall be covered under Article 7 business profits
• Various payments open a considerable scope for debate with regard to whether such
payments constitute royalty under Article 12 of the tax treaty or service payments giving rise
to business profits within the meaning of Article 7 of the tax treaty.
o The above conditions are required to be satisfied on a cumulative basis.
o It is very important that the PE should be situated in a contracting state and not in a third state for Article 7 to apply.
o In all other cases, Article 12 would overrule Article 5 read with Article 7 of the DTAA.
Royalties arise in state S (state of source)
The beneficial owner of royalties is a resident of contracting state (State R)
Such beneficial owner carries on business in state S through a PE situated therein or
performs independent personal services from a fixed base situated therein and
the right or property in respect of which royalty is paid is effectively connected to such PE

27. Illustrations
27

28. 28
Illustration 1
Situation
• A Ltd in India is engaged in business of producing food
products
• Z ltd, incorporated in Dubai, also engaged in production of
food products, has proprietary mix of spices which it uses in
its products
• A Ltd obtains the recipe for preparation of a spice mix from
Z Ltd against the condition that 5% of the total sales of the
entire year for A Ltd shall be exported to Z Ltd at discount of
50% of MRP.

29. 29
Solution
Analysis • Z ltd allows the Indian company to use its secret mix for a
purpose of manufacture
• It is provision of right to use a secret formula for which its
it is getting compensated
• Even though the consideration is not direct, 50% of the
sale price of 5% of the sales shall get covered under the
ambit of Royalty

30. 30
Illustration 2
Situation • G Co is a Indian company engaged in manufacturing of cotton
clothes and garments
• H Co which is located in Singapore has unique methods which it
uses in manufacture of its clothes which results in more yield
and lower costs
• G Co. pays a lumpsum amount to H Co to disclose and teach
them about the method they use in their production

31. 31
Solution
Analysis • The Singapore company receives a consideration in lumpsum
for imparting a specialised commercial knowledge to the
Indian Company
• It shall not tantamount to FTS as there is no provision of
services along with imparting of knowledge; only the
knowledge is getting transferred
• It would be considered as royalty as it is consideration
against provision of specialised commercial knowledge

32. 32
Illustration 3
Situation • ‘A’, a banker, passionate about music, has recorded songs at
his home using his own lyrics
• He does not commercially sell or rent his music
• ‘J’, a non-resident friend of A, listens to the songs of A and
decides to publish an album based on them
• However, J does not use the same music but only uses the
lyrics written by A
• J pays a certain sum to A against the usage

33. 33
Solution
Analysis • Providing right to use any literary or artistic work would
get covered under Royalty
• Use of the entire song does not matter as even usage of
lyrics shall be considered to be utilisation of literary
work
• Thus, the payment would be regarded as royalty

34. 34
Illustration 4
Situation • R Ltd, a Russian research company, discovers a new process to
produce a chemical product which is used in production of
medicines
• It provides the intellectual property of the said process to a
Pharmaceutical company in India
• The said IP was regarded as an intangible asset in the books of
R Ltd, against which there was a development cost involved
• The company pays a lumpsum amount to R Ltd against this IP

35. 35
Solution
Analysis • Even though the character of the lumpsum consideration, is of
royalty, the said amount would not be taxed as royalty as the
amount received in the hands of R Ltd shall be chargeable to
tax as capital gains
• It would not be regarded as any other income, apart from
capital gains, as the IP is regarded as intangible asset in the
books of R Ltd and not as current asset
• The definition of royalty (as per the Act), does not consider
capital gains as a consideration for the purpose of taxability
• Thus, the payment would not be regarded as royalty

36. Illustrative Cases
36

37. 37
Payment for Software
• The taxpayers contend that there is a difference between use of a copyright and that of a copyrighted article.
• As long as there is no commercial exploitation by the purchaser of the embedded copyright (e.g. creating
multiple copies of the software for onward sale), it cannot be said to be a payment for “use of the copyright”,
but is merely a purchase transaction which involves buying of a copyrighted article
This is one of the most controversial issues surrounding taxation of Royalty.
The sale of software generally happens by way of entering into a license agreement.
In such cases, the Revenue Authorities tend to proclaim that granting of a
license to use the software is a right to use granted to the purchaser and
hence, the payments are in the nature of royalties.
Karnataka High Court in the case of CIT vs Samsung
Electronics Co. Ltd. [2012] 345 ITR 494 (Kar)
Delhi High Court in the case of DIT vs Infrasoft
Ltd. [2013] 39 taxmann.com 88 (Del)
A copyright is a bundle of rights and even the
payment for purchase or use of off the shelf
software amounts to royalty not only under
the Act, but also under the treaty
License granted to the licensee permitting him
to download the computer programme and
storing it in the computer for his own use was
only incidental to the facility extended to the
licensee to make use of the copyrighted
product for his internal business purposes.
Therefore, would not constitute royalty

38. Differing Views
Delhi High Court in the case of DIT vs Nokia Networks OY [2012] 25 taxmann.com 225 (Del)
There is a clear distinction between royalty paid on transfer of copyrights and consideration for
transfer of copyrighted articles
Mumbai Tribunal in the case of DDIT vs. Reliance Communication Ltd. [2018] 90 taxmann.com 358 (Mum trib.)
It was held that the consideration paid to the suppliers for acquiring copy of software was not the ‘use of
copyright or transfer of right to use of copyright’ and that the payment was made for the ‘copyrighted article’ to
the vendors of software cannot be taxed as royalty
With no judgement from the Honourable Supreme
Court until now, and the conflicting views of the
High Courts, the matter continues to be litigative

39. 39
Engineering Drawing/ Designs / Technical
Documentation
Supply of machine design to enable buyer to operate it without transfer of license of patent/copyright, thereby
not allowing buyer to manufacture machine itself, cannot be regarded as Royalty.
[Neyveli Lignite Corporation Ltd. [2000] (243 ITR 459) (Mad) & Mitsui Engg. & ship Blg. Co. Ltd [2003] (259 ITR
248 (Del)]
Supply of technical documentations like designs, process, specification etc. before commencement of production
is not royalty
[Nisshinbo Ind. Inc. vs. ACIT [2000] (83 ITD 748)(Chennai)]
Consideration for outright purchase of drawings and designs (i.e. transfer of ownership per se) is not royalty
[CIT v Davy Ashmore India Ltd [1991] 190 ITR 626 (Cal), Leonhardt Andra Und Partner, Gmbh v. CIT (2001) 249
ITR 418 (Cal)]
Engineering drawings & designs supplied to an Indian Co. for lump sum consideration for setting up plant for its
own client with the right to use, sell or transfer it is not alienation of right/property contingent upon
productivity/use or disposition but an ‘out and out’ sale of property.
[Pro-quip Corporation [2000] (255 ITR 354) (AAR) ]

40. 40
Divisibility of Contracts / Composite Agreements
o Depending on case to case, a contract may be a composite or an indivisible contract, or a divisible contract.
o In case of an indivisible contract, the entirety of the transaction ought to be taken and the individual
transactions get colligated under the main contract activity.
o In case of a divisible contract, taxability of each contract element is as per the relevant attributes of the
element under consideration
Case of Embedded Software
Supply of integrated equipment comprising hardware and software. Supply of Software is
inextricably linked to supply of the hardware and, both do not have independent existence / use
Example – Telecom equipment’s in fixed and mobile networks
Whether Treated as Business Income or Royalty?

41. 41
Embedded Software
DIT vs Ericsson A.B.
[2012] 204 Taxman 192
(Del)
Supply contract of a non-resident to an Indian Company of a GSM System
including hardware and software is inseparable / not divisible separately so as
to tax the software component as royalty is not appropriate so no part of the
payment can be classified as royalty
Motorola Inc vs DCIT
[2005] 147 Taxman 39
(Del SB)
Supply of GSM cellular equipment with hardware and embedded software
which was held to be indivisible and non-taxable in India
Galatea Ltd. Vs. DCIT
[2016]179 TTJ 265 (Mum)
• In case of a sale of machine along with operating software, software had no
other independent use, except to enable such machine to function.
• It was held that there was no separate transaction of sale of software and,
therefore, it was predominantly transaction of sale of machine which cannot
be brought within the definition of royalty
HITT Holland Institute of
Traffic Technology B.V.
V.s DDIT [2017] 78
taxmann.com 101(Kol)
In case of sale of equipment and its accessories with software imbedded in the
equipments, one cannot bifurcate the consideration towards software so as to
tax the amount as royalty
Bentley Nevada LLC vs.
JDIT (ITA Nos.5817 to
5821/Del/2011)
When a software is embedded in hardware and there is one composite price,
the entire amount remains as business income and a part of the same cannot
be considered as royalty

42. 42
JUDICIAL
PRECEDENTS

43. Rackspace, US Inc vs. Deputy Commissioner of Income-tax
(International Taxation), Mumbai [2020] 113 taxmann.com
382 (Mumbai Trib.)
Assessee, a US based company, earned income from providing cloud services including
cloud hosting and other supporting and ancillary services to its Indian customers
Assessee claimed that revenues earned on account of cloud hosting services constituted
business profits and since it did not have PE in India, same would not be subjected to tax in
India
However, Assessing Officer considered impugned receipts as royalty and held it to be
taxable as per India
Facts
Issues
Whether the income shall be regarded as business income or royalty?

44. Held
It was noted that agreement between assessee and its customers was for providing
hosting and other ancillary services to customers and not for hiring or leasing of any
equipment
Customers were not having physical control or possession over servers and right to
operate and management of this infrastructure or servers vested solely with assessee
So it was held that the impugned income earned by assessee could not be said to be
royalty within the meaning of Section 9 of the Act

45. 45
American Chemical Society vs DCIT [2019] (106
taxmann.com 253) (Mumbai- Tribunal)
Assessing
Officer (AO)
TribunalAssessee (NPO)
supports knowledge
in field of chemistry
and consequently,
provides access to
its database
Taxes Income earned
w.r.t subscription fee
from Indian Customers
In accordance with
S.9(1)(vi) read with
Article 12(3)
Royalty
Appeals to
No copy right or full
fledged right to use is
provided to customers
Limited right to use is
provided, hence it’s not
royalty and not taxable

46. 46
Contd.
Assessee
Collects OrganizesAccumulates
Creates
Database
Customers
Data in
Public
Domain
Access it for a fee
OECD
Commentary
Royalty??
Exclusively
owned by
grantor
Information
should be
undivulged
01
In this case information is not undivulged as
it readily available in Public 02
Information should
arise from previous
experience
What the Assesse collates is experience of
others and provides access thereto

47. 47
Held
The Indian customers pay fees only for access to information the database encompasses.
By granting access to the database, the assessee neither shares its own experience, technique or
methodology employed in evolving databases with the users, nor imparts any information relating to them.
Thus income earned cannot be termed as royalty
Access to database is only the transfer of copyrighted article and not the copy right itself
Payments made towards the usage of copyrighted article cannot be regarded as royalty
Thus it is held that subscription fees cannot be taxed as royalty as per section 9(1)(vi) as well as article 12(3) of
the Indian-USA DTAA

48. 48
Google India (P.) Limited v. ACIT [2017] 86 taxmann.com 237
Facts • Google India Private Limited [“Google India”] is a wholly-owned subsidiary of Google
International LLC, US.
• Google India had been appointed by Google Ireland Ltd. [“GIL”] as a non-exclusive authorized
distributor of “Adwords Programs” to advertisers in India.
• The Adwords Program Distribution Agreement allows Google India to access all intellectual
property and confidential information which is used for activities related to the Distribution
Agreement.
• Google India is also having access to the IP address of the desktop / laptop / tablet, photographs
of users and the time spent on websites, eating habits, wearing preferences, etc.
• Further, the Google search engine has access to data pertaining to the user of the website in the
form of name, sex, age, city, state, religion, etc
Issue
Whether payment made by Google India under the Agreement constituted only marketing and
promoting expenses and not Royalty?

49. 49
Observations and Held
Held
Observations
• Accordingly, the Tribunal observed that the Distribution Agreement is not merely an agreement to
provide advertisement space but is also an agreement for facilitating display and publishing of an
advertisement to the targeted customer.
• Further, the Tribunal observed that the IP of Google vests in the search engine, technology,
associated software and other features, and hence use of these tools for performing various
activities, including accepting advertisements, providing before / after sales services, clearly falls
within the ambit of royalty.
• The Tribunal also noted that as per the terms of the Distribution Agreement, Google India was
permitted to use tradename, trademarks, service marks, domains or other distinctive brand features
of GIL solely for the use under the Distribution Agreement, on a non-exclusive, non-sublicensable
basis for the purposes of marketing and distribution of the Adwords Program
• It was held that the payments made by Google India under the agreement were not only for marketing
and promoting the Adwords Program but was also for the use of Google brand features and IP
• Thus, payment made by Google India to GIL was royalty chargeable to tax in India under the Act as well
as India Ireland DTAA

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