AWS cloud payments not taxable as royalty or technical fees: Delhi HC

Payments received by US firm Amazon Web Services, from Indian entities for rendering cloud computing services are not taxable as royalty and fees for technical service (FTS), the Delhi High Court held on Thursday.

A Division Bench of justices Vibhu Bakhru and Tejas Karia dismissed the income tax department’s petition holding that rendering such services by Amazon cannot be taxed either under the Income Tax Act or the India-US Avoidance of Double Taxation and Prevention of Fiscal evasion with respect to taxes on income. “We find no merit in the…