Amazon Web Services wins ₹1,250 crore tax battle, Delhi HC says payments for cloud services is not royalty
The tax department's argument, which sought to classify these payments as royalty and thus tax them accordingly, was rejected by the court. The Delhi High Court's detailed judicial scrutiny of the documents and arguments presented, led it to conclude that there was no basis for the tax department's contention. This outcome provides a positive signal for global cloud service providers operating in India and offers considerable relief to Indian businesses utilising AWS.
The tax department's argument, which sought to classify these payments as royalty and thus tax them accordingly, was rejected by the court. The Delhi High Court's detailed judicial scrutiny of the documents and arguments presented, led it to conclude that there was no basis for the tax department's contention. This outcome provides a positive signal for global cloud service providers operating in India and offers considerable relief to Indian businesses utilising AWS.
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