The Indian High Court has ruled on whether or not payments by an Indian company to its Canadian parent for the use of an in-house intranet portal constitutes royalty payments subject to withholding. The payments were for the use of the portal as well as reimbursement to the parent company for related licenses and in-house development costs for the portal, with no markup. No license for the use of the portal was transferred to the Indian company.
The Indian taxpayer initially withheld and rem…