Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITAT
Live LawThe Delhi Bench of Income Tax Appellate Tribunal has held that receipts from Customer Relationship Management services are not taxable in India as royalty or Fee for Technical Services.The bench of Saktijit Dey and Brajesh Kumar Singh has observed that on November 26, 2019, the assessee filed a revised return of income, declaring income. The Delhi Bench of Income Tax Appellate Tribunal has held that receipts from Customer Relationship Management services are not taxable in India as royalty or Fee for Technical Services. However, while computing the assessee's income in the final assessment order, the assessing Officer erroneously included the interest on the income tax refund in the receipts of CRM services. As stated by the Assessing Officer, the assessee is engaged in providing CRM services to its customers and subscribers in various countries, including India, which enables them to systematically record, store, and act upon business data and to help businesses manage customer accounts, track sales leads, evaluate marketing campaigns, and provide better post-sales service.