The Delhi high court ruled that transfer of intellectual property rights (IPR) whose owners are not based in India could not be taxed in the country

Last Modified: Tue, Jul 26 2016. 06 24 PM IST

New Delhi: In a significant decision, the Delhi high court on Monday ruled that transfer of intangible assets like intellectual property whose owners were not based in India could not be taxed in the country.

In what would benefit Foster’s Australia, the petitioner (now known as CUB Pty), the high court overturned a decision of the Authority of Advance ruling which said that such transfer would mean that income accrued in India.

A two-judge bench comprising justices Badar Durrez Ahmed and Sanjeev Sachdeva said that the legislature, while clarifying what would mean capital assets, refers to shares and derivatives, but excludes intellectual property.

Sourcehttp://www.livemint.com/Companies/SFk8J7rYF5ep6ewl2jmDCN/If-IPR-owner-is-abroad-its-transfer-cannot-be-taxed-in-Indi.html

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