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September 2024

Non-resident — Double taxation avoidance — Income deemed to accrue or arise in India — Royalty — Meaning of — Difference between transfer of copyright and right to copyrighted article — Provision of customer relationship management services by resident of Singapore — Fees received not royalty within meaning of Act — Not also taxable in India under DTAA between Singapore and India.

By Keshav Bhujle and Ritu Punjabi, Advocates
Reading Time 3 mins

CIT (International Taxation) vs. Salesforce.Com

Singapore Pte. Ltd.

[2024] 464 ITR 257 (Del)

A,Ys.: 2011–12 to 2017–18

Date of order: 14th February, 2024

Ss. 9(1)(vi), Expl. 2of the ITA 1961: and DTAA

between Singapore and India Art. 12(4)(b)(1)

39. Non-resident — Double taxation avoidance — Income deemed to accrue or arise in India — Royalty — Meaning of — Difference between transfer of copyright and right to copyrighted article — Provision of customer relationship management services by resident of Singapore — Fees received not royalty within meaning of Act — Not also taxable in India under DTAA between Singapore and India.

The assessee was a tax resident of Singapore and was stated to provide a customer relationship management services application which was stated to be an ‘enterprise business application’. The application enabled customers and subscribers to record, store and act upon business data, formulate business strategies and enable businesses to manage customer accounts, track sales po

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