AWS Cloud not taxable under DTAA says SC

The Supreme Court has upheld the Delhi High Court’s ruling in favour of Amazon Web Services, holding that payments for standard cloud services are neither royalty nor fees for included services under the India–US tax treaty.

Such payments are non-taxable in India where there is no permanent establishment.

The ruling provides greater certainty for cross-border digital services and distinguishes cloud access from acquiring IP or technical know-how.