payments to Non-Residents to USA/UK, Which definition will apply? As per DTAA or as per section 9(1)., Income Tax

[Abraham Wilson]

Dear Experts,

Recently in Budget 2012, the definition of Royalty vide in section 9(1)(v)(vi)(vii) has been amended with Certain Explanations. But the same has not been amended with DTAA with USA/UK.

While making  payments to Non-Residents to USA/UK, Which definition will apply? As per DTAA or as per section 9(1).

Pls give your valuable points.

 

Posts / Replies

[CA GOPALJI AGRAWAL]

The meaning of royalty as defined u/s 9(1) would apply that too restrospectively from June 1, 1976.