Payment From Google Towards Marketing & Distribution Rights Of AdWords Is Not Royalty, Clarifies Bangalore ITAT
11 months, 3 weeks ago

Payment From Google Towards Marketing & Distribution Rights Of AdWords Is Not Royalty, Clarifies Bangalore ITAT

Live Law  

Following the Coordinate Bench ruling in ITA No.2845/Bang/2017, wherein it was held that the payment made by Google India to assessee was not in the nature of royalty/ FTS and consequently it could not be brought to tax in the hands of assessee, the Bangalore ITAT ruled that amount received by Google Ireland from Google India towards marketing & distribution rights of AdWords program is not royalty. While clarifying the position regarding taxability of receipts from sale of online As per the brief facts of the case, the assessee company, involved in the business of sale of online The Bench observed that the issue relating to the taxability of payments received by the assessee from GIPL as per terms of Reseller Agreements, was considered by the coordinate Bench of the Tribunal in assessee's own case for AY 2007-08 in ITA No.2845/Bang/2017. The Bench also observed that the Coordinate Bench therein has held that that the payment made by the payer to the assessee is not in the nature of royalty or FTS and consequently it cannot be brought to tax in the hands of the assessee. Mishra Case Title: Google Ireland Ltd verses DCIT Case Number: ITA Nos.191 to 194/Bang/2024 Click here to read/ downloadthe Order

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History of this topic

Income From Reselling Of Subscription Based Product Is Royalty: ITAT
9 months, 2 weeks ago

Income From Reselling Of Subscription Based Product Is Royalty: ITAT

Live Law  

The Mumbai Bench of Income Tax Appellate Tribunal has held that the income from the reselling of subscription-based products is royalty.The bench of Kavitha Rajagopal and Om Prakash Kant has observed that the assessee has sold not only the digital product but also all copyrights therein, which squarely falls under the definition of 'royalty' both. The bench of Kavitha Rajagopal …

Amounts Paid By Google India To Google US For Seconded Employees Does Not Come Within ‘FTS’ or ‘FIS’: ITAT
2 years ago

Amounts Paid By Google India To Google US For Seconded Employees Does Not Come Within ‘FTS’ or ‘FIS’: ITAT

Live Law  

The Banglore Bench of the Income Tax Appellate Tribunal has held that amounts paid by Google India to Google US with reference to seconded employees do not come within the fees for technical services or fees for included services under the Income Tax Act or under the India-US Tax Treaty.The two-member bench of George George K. and Padmavathy S. The …

Distribution Fees Paid By Google India To Google Ireland, For Distribution Of AdWords Programme In India, Not 'Royalty' : ITAT
2 years, 4 months ago

Distribution Fees Paid By Google India To Google Ireland, For Distribution Of AdWords Programme In India, Not 'Royalty' : ITAT

Live Law  

The Bangalore Bench of the Income Tax Appellate Tribunal has ruled that the distribution fees paid by Google India to Google Ireland under a Distribution Agreement, under which Google India was appointed as a distributor of AdWords programme to advertisers in India, is not in the nature of 'Royalty' under the India-Ireland DTAA. Under the said programme/ Distribution Agreement, the …

ITAT Quashes Time Barred TDS Default Order Passed Against Google India
2 years, 6 months ago

ITAT Quashes Time Barred TDS Default Order Passed Against Google India

Live Law  

The Bangalore Bench of the Income Tax Appellate Tribunal has quashed the TDS default order passed against Google India on the grounds that it was time barred. The AO issued a notice under section 201 of the Income-tax Act, 1961 to the assessee to show cause why the distribution fees payable to GIL should not be regarded as royalty. The …

Karnataka High Court Sets Aside Imposition Of Royalty Taxation On Google India; Asks ITAT To Consider Again
3 years, 10 months ago

Karnataka High Court Sets Aside Imposition Of Royalty Taxation On Google India; Asks ITAT To Consider Again

Live Law  

In a relief to Google India Private Limited, the Karnataka High Court has set aside the order of the Income Tax Appellate Tribunal imposing royalty taxation for 'Adwords program'. In the year 2004 the appellant-company has entered into an IT Enables Services agreement with Google Ireland Limited and the appellant has established its IT Enabled Services division for provision of …

Google India’s FY19 revenue halves due to change in accounting standards
5 years, 5 months ago

Google India’s FY19 revenue halves due to change in accounting standards

Live Mint  

New Delhi: Google India’s revenues more than halved to ₹4,147 crore in the year ended 31 March, 2019, due to changes in accounting standards. According to the filing, the Ministry of Corporate Affairs on 28 March, 2018, notified Ind AS 115 as the new standard effective for accounting periods beginning on or after 1 April, 2018. “As per IND AS …

Income Tax Appellate Tribunal says Google India must pay tax on ad revenue sent to parent
6 years, 10 months ago

Income Tax Appellate Tribunal says Google India must pay tax on ad revenue sent to parent

Firstpost  

In a setback to Google India, the Income Tax Appellate Tribunal has upheld a tax demand on the search engine’s remittances of New Delhi: In a setback to Google India, the Income Tax Appellate Tribunal has upheld a tax demand on the search engine’s remittances of The Bangalore bench of ITAT, in a 331-page order, upheld the tax department’s contention …

ITAT Slaps Google India With Tax Liability On Rs 1,457-Cr Revenue For Failure To Deduct TDS For Remittances to Google Ireland [Read Order]
7 years, 4 months ago

ITAT Slaps Google India With Tax Liability On Rs 1,457-Cr Revenue For Failure To Deduct TDS For Remittances to Google Ireland [Read Order]

Live Law  

Google India has been slapped with tax liability worth crores, with the ITAT dismissing six appeals filed by Google India for the assessment years 2007-08 to 2012-13. The issue was whether Google India was liable to deduct tax at source for its remittances made to Google Ireland Limited as Google India has been slapped with tax liability worth crores, with …

Google India loses six year old battle with Indian tax office; faces taxation on Rs 1,457 crore of revenue
7 years, 4 months ago

Google India loses six year old battle with Indian tax office; faces taxation on Rs 1,457 crore of revenue

Firstpost  

The tribunal has also dismissed double taxation avoidance agreement clause as well. Google India has lost its six year old battle with the Indian tax office. As per reports, Google India faces taxation on Rs 1,457 crore of revenue transacted between 2007-08 to 2012-13 from Google India to Google Ireland. The appeal made by Google India between 2007-08 to 2012-13, …

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