Delhi High Court Upholds Withholding Tax On Part Of LG Electronics’ 2003 ICC World Cup Sponsorship Payment

After 21 years, the Delhi High Court upheld the levy of withholding tax on a portion of LG Electronics India’s sponsorship payments for the 2003 ICC Cricket World Cup.

The Court held that one-third of the USD 11 million payment amounted to “royalty” for the right to use ICC trademarks, taxable under Indian law and the India–Singapore DTAA.

Rejecting LG’s argument, the Court observed that the use of ICC marks was not incidental to advertising but involved substantive and global trademark rights under the sponsorship agreement.

[LG Electronics v. Department of Income Tax]