Royalty
The
term ‘royalty’ means consideration (including any lumpsum consideration
but excluding any consideration which would be the income of the recipient chargeable
under the head ‘Capital gains’) for:
(i)
the transfer of all or any rights (including the granting of licence) in
respect of a patent, invention, model, design, secret formula or process or
trade mark or similar property;
(ii)
the imparting of any information concerning the working of, or the use of, a
patent, invention, model, design, secret formula or process or trade mark or
similar property;
(iii)
the use of any patent, invention, model, design, secret formula or process or
trade mark or similar property;
(iv)
the imparting of any information concerning technical, industrial, commercial
or scientific knowledge, experience or skill;
(v)
the use or right to use any industrial, commercial or scientific equipment but
not including the amounts
referred to in section 44BB;
(vi)
the transfer of all or any rights (including the granting of licence) in
respect of any copyright, literary, artistic or scientific work including films
or video tapes for use in connection with television or tapes for use in
connection with radio broadcasting, but not including consideration for the
sale, distribution or exhibition of cinematographic films;
(vii)
the rendering of any service in connection with the activities listed above. The
definition of ‘royalty’ for this purpose is wide enough to cover both
industrial royalties as well as copyright royalties. The deduction specially
excludes income which should be chargeable to tax under the head ‘capital
gains’.
Royalty
Royalty will be deemed to accrue or arise in
India when it is payable by
(i)
the Government; or
(ii)
a person who is a resident in India except in cases where it is payable for the
transfer of any right or the use of any property or information or for the
utilization of services for the purposes of a business or profession carried on
by such person outside India or for the purposes of making or earning any
income from any source outside India; or
(iii)
a non-resident only when the royalty is payable in respect of any right,
property or information used or services utilised for purposes of a business or
profession carried on in India or for the purposes of making or earning any
income from any source in India.
Lumpsum
royalty payments made by a resident for the transfer of all or any rights
(including the granting of a licence) in respect of computer software supplied
by a non-resident manufacturer along with computer hardware under any scheme approved
by the Government under the Policy on Computer Software Export,
Software
Development and Training, 1986 shall not be deemed to accrue or arise in India.
“Computer software” means any computer
programme recorded on any disc, tape, perforated media or other information
storage device and includes any such programme or any customized electronic
data.
0 comments:
Post a Comment