Corporate tax alert

Payment for advertising package/rights not royalty

The Mumbai Bench of the Income-tax Appellate Tribunal (ITAT), based on facts of the case, has rendered its decision that payment made by an Indian company to its Malaysian group company for advertising package/ rights is not taxable as ‘royalty’ as per the provisions of the India-Malaysia tax treaty. Further, the ITAT has also held that Article 28 of India-Malaysia tax treaty (relating to limitation of benefits) could not be invoked. 

Did you find this useful?