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Cloud Payments Made To AWS Are Not Taxable As Royalty

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SUMMARY

The Delhi High Court agreed, observing that customers only obtain a non-exclusive, non-transferable license to access these services

The court further noted that such payments do not qualify as “royalty” under Article 12(3) of the India-US DTAA

The development marks a significant milestone in the ongoing discourse around taxation of payments made by Indian companies to foreign cloud service providers

The Delhi High Court has reportedly ruled that payments received…

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