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Payments to Facebook, AWS for Advertising, Marketing not Taxable as Royalty: ITAT

In a relief to Urban Ladder Home Décor Solutions, the Bangalore Bench of Income Tax Appellate Tribunal (ITAT) ruled that Payments to Facebook, AWS for advertising, marketing are not taxable as Royalty. The assessee, Urban Ladder Home Décor Solutions Pvt. Ltd. is engaged in the business of dealing in home décor products. It sells its products mainly through online marketing. Hence, the assessee has placed its advertisement in the platform of Facebook, Ireland. It has also used a bulk mail facility offered by M/s Rocket Science Group, USA. The assessee has also used Amazon Web Services (AWS) offered by M/s Amazon Inc., USA, which is in the nature of providing information technology infrastructure on a rental basis. All three payees are non-residents.

Source Taxscan


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