India: Payments for database access not taxable under U.S. tax treaty

The KPMG member firm in India has prepared reports on recent tax developments

The KPMG member firm in India has prepared reports on recent tax developments

The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).

  • No tax on database access under India-United States income tax treaty: The Delhi Bench of the Income-tax Appellate Tribunal held that a payment that a U.S. entity received from India in exchange for providing database access was not taxable as a royalty under provisions of the India-United States income tax treaty because the database access services did not result into transfer of a copyright. The case is: Dow Jones & Company Inc. Read a December 2021 report [PDF 312 KB]

  • Reassessment proceedings: The Delhi High Court quashed reassessment notices issued after 31 March 2021 under prior reassessment provisions. The Finance Act, 2021 introduced new reassessment provisions that were effective 1 April 2021.  The High Court held that the reassessment notices issued between April to June 2021 had applied the former rules and therefore were invalid. The case is: Mon Mohan Kohli. Read a December 2021 report [PDF 367 KB]

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.