Receipt of EY for Reimbursement of Costs of Centralized Services from Member Firms not ‘Royalty’: ITAT follows AAR Order [Read Order]

Receipt - EY Global Services Limited - Reimbursement - Costs - Centralized Services - - Royalty - ITAT - AAR Order - Taxscan

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), while following an order of the Authority for Advance Rulings (AAR) held that the payments received by EY Global Services Limited towards reimbursements of costs of centralized services from the Member Firms cannot be termed as ā€˜royaltyā€™ for the purpose of Income Tax Act, 1961….

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