India, May 30 -- The Delhi High Court has reportedly ruled that payments received by Amazon Web Services (AWS) from Indian entities for cloud computing services are not taxable as royalty or fees for technical services (FTS).

A Bar and Bench report said that the Indian tax authorities argued that such payments should be taxed as either "royalty" or "fees for technical services" under both the Income Tax Act, 1961, and the India-US Double Taxation Avoidance Agreement (DTAA)

In response, AWS contended that its services were standardised, automated, and delivered through pre-set contracts, without any transfer of technical know-how, intellectual property (IP), or rights to use its infrastructure.

AWS emphasised that customers merely recei...