ITAT upholds Non-taxability of Google Ireland’s Ad Revenue in India: Payments not Classified as Royalty or FTS

The Income Tax Appellate Tribunal (ITAT) upheld the non-taxability of Google Ireland’s ad revenue in India, ruling that the payments made to Google Ireland by Indian advertisers do not qualify as royalty or fees for technical services (FTS) under the Income Tax Act. The case involved a dispute over the taxability of payments made for online advertising services provided by Google Ireland. The ITAT held that the payments were for the use of standard advertising services and did not involve the transfer of any technology or intellectual property. This decision aligns with previous rulings and provides clarity on the tax treatment of payments for digital advertising services, ensuring that they are not subject to withholding tax as royalty or FTS.