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Tata Chemicals gets relief from Income Tax Appellate Tribunal in logo fee case
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Under the ‘Tata brand equity and business promotion agreement’, which dates back to January 1999, this company, like others in the Tata fold, have to pay a certain percentage of their annual profits to Tata Sons, as a ‘premium’ for using the TATA logo. Accordingly, in FY03 (the year in dispute), Tata Chemicals paid 0.25% of its profits (Rs 3.7 crore) to Tata Sons.
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(This story originally appeared in on Feb 22, 2021)The Mumbai bench of Income Tax Appellate Tribunal (ITAT) has allowed Rs 3.7 crore paid by
Tata Chemicals gets ITAT relief in logo fee case
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Tata Chemicals gets ITAT relief in logo fee case
Lubna Kably & Reeba Zachariah / TNN / Updated: Feb 22, 2021, 09:30 IST
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MUMBAI: The Mumbai bench of Income Tax Appellate Tribunal (ITAT) has allowed Rs 3.7 crore paid by Tata Chemicals for using the ‘TATA’ logo as a business deduction.
Under the ‘Tata brand equity and business promotion agreement’, which dates back to January 1999, this company, like others in the Tata fold, have to pay a certain percentage of their annual profits to Tata Sons, as a ‘premium’ for using the TATA logo. Accordingly, in FY03 (the year in dispute), Tata Chemicals paid 0.25% of its profits (Rs 3.7 crore) to Tata Sons.
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