India: Income from distribution rights, TV channels not taxable as royalty under U.S. tax treaty

India: Income from distribution rights

The Delhi Bench of Income-tax Appellate Tribunal held that income derived by a foreign company from the granting of distribution rights of TV channels to an Indian company is not taxable as royalty income under the provisions of the India-United States income tax treaty.

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The tribunal determined that the taxpayer had only granted rights to the Indian company, and that the copyright of the content in the product remained with the taxpayer and was not transferred to the Indian company.

The case is: Turner Broadcasting Systems Asia Pacific Inc. v. DDIT

Read an October 2020 report [PDF 296 KB] prepared by the KPMG member firm in India

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