‘Foreign healthcare services companies not liable for tax’

Foreign healthcare services firms are not liable for tax in India as payments for such services cannot be construed as royalty, according to a ruling by a Mumbai tax tribunal. The order by the Income Tax Appellate Tribunal (ITAT) was in response to the income tax department's position that foreign healthcare services firms are giving services such as providing technical skills, right to use logos, etc. Thus the payment they get from Indian companies is "royalty" that is taxable in the country.

Source : economictimes.indiatimes.com