19 Sep 2016

In its recent judgment on Cub Pty Ltd. Vs. Union of India (Foster’s Beer), the Delhi High Court concluded that for capital gains arising from the sale of intangible assets such as trademarks, brand logos etc., the situs of the owner of the intangible asset should be considered. This judgement relied on the legal maxim Mobilia Sequuntur Personam, which literally means “movables follow the law of the person”. Intellectual properties being “movable properties”, the court applied this maxim and concluded that income from assignment of trademarks is taxable only in that jurisdiction where the owner of the mark is resident.>>

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