COURT: Bombay High Court
CORAM: Akil Kureshi J, M. S. Sanklecha J
GENRE: International Tax
CATCH WORDS: India-Netherlands DTAA, Retrospective amendment, royalty
COUNSEL: J.D. Mistri
DATE: February 5, 2019 (Date of pronouncement)
DATE: June 8, 2019 (Date of publication)
Section 9(1)(vi) ‘Royalty’: The insertions of Explanations 5 & 6 to s. 9(1)(vi) by the Finance Act 2015 w.r.e.f. 01.04.1976, even if declaratory and clarificatory of the law, will not apply to the DTAAs. The DTAAs are a bilateral agreement between two Countries and cannot be overridden by a unilateral legislative amendment by one Country (New Skies Satellite BV 382 ITR 114 (Del) & Siemens AG 310 ITR 320 (Bom) followed).