S. No. Case Law Forum Findings of the Court / Tribunal
Delhi HC: Right of subscription to a cloud-
Delhi based software cannot possibly be said to
ITATaffirmed by be equivalent to the 'use' or 'right to use'
Salesforce.com
the Delhi High any industrial, commercial or scientific
1. Singapore Pte.
Court([2024] equipment.
[2022] 137
taxmann.com 3
taxmann.com Delhi ITAT:Subscription fees received for
580) providing CRM services and access to
database for storage, retrieval of
proprietary data / generating desired
reports not royalty.
Cloud based services do not involve any
transfer of rights to the customers in the
Delhi ITAT process nor does it provide any right of
Microsoft Regional affirmed by reproduction to the subscriber. Such
Sales Pte. Ltd. the Supreme services merely facilitate the flow of user
2. Court of India data from the front-end user through
[2022]145 SLP (C) Diary Internet to the provider's system and back.
taxmann.com 29 No(s). Accordingly, subscription fee charged is not
7916/2023 royalty but merely a consideration of online
access of the cloud for process and storage
of data to run the applications.
Payments received for cloud computing
Amazon Web services (AWS)not taxable as Royalty/FTS,
Services since standard and automated services
3. Delhi ITAT provided with no customization for any
[2023] 153 particular customer. Also, customers did
taxmann.com 45 not receive any right to use copyright or
other IP involved in AWS service.
Reasoning Global E-
Cloud based services do not involve any
4. Application Ltd. Hyderabad
transfer of rights. Hence, not taxable as
[2022] 145 ITAT
Royalty.
taxmann.com 464
Delhi ITAT
MOL Corporation affirmed by Subscription fees received for online access
5. [2022] the SC of India of cloud computing services not taxable as
140taxmann.com SLP Appeal (C) royalty as subscribers did not get any right
121 No(s). 5857 of of reproduction of patent / copyright.
2023)
Dow Jones &
Payment made for access to database is not
6. Company Inc.
(Delhi ITAT) taxable as 'royalty' since such services do
[2022] 135
not result in transfer of a copyright.
taxmann.com 270
Payment for storage and retrieval of data is
Vishwak Solutions
towards hiring of storage space and not
7. (P.) Ltd.
(Chennai ITAT) taxable as 'royalty' and can only constitute
[2015] 56
business income which in the absence of PE
taxmann.com 158
cannot be taxed.
