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June 2024

Article 12 of India-USA DTAA — Subscription fees received by an American scientific society for providing access to online chemistry database and for sale of online journal to Indian subscribers did not qualify as Royalty, either in terms of section 9(1)(vi) of Act, or in terms of article 12(3) of India-USA DTAA.

By Geeta Jani | Dhishat B Mehta | Bhaumik Goda, Chartered Accountants
Reading Time 2 mins

5 [2024] 161 taxmann.com 354 (Mumbai - Trib.)

American Chemical Society vs. DCIT

ITA No: 415/Mum/2023

A.Y.: 2021–22

Dated: 27th March, 2024

Article 12 of India-USA DTAA — Subscription fees received by an American scientific society for providing access to online chemistry database and for sale of online journal to Indian subscribers did not qualify as Royalty, either in terms of section 9(1)(vi) of Act, or in terms of article 12(3) of India-USA DTAA.

FACTS

The assessee (ACS) was a society based in the USA and supported scientific inquiry in the field of chemistry. Its source of income was subscription fees — for providing access to online chemistry database and for sale of online journals from outside India to Indian subscribers.

Following the orders passed in earlie

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