--- title: "TCS paid this much to use Tata Group branding." description: "India's largest IT company, Tata Consultancy Services (TCS), paid Rs 77 lakh to Tata Group's parent company, Tata Group, to use the Tata logo." author: "Saumya Mishra" published: 2023-09-28 updated: 2023-09-29 canonical: https://www.mindstick.com/news/3360/tcs-paid-this-much-to-use-tata-group-branding category: "technology" tags: ["Payment Gateway"] reading_time: 2 minutes --- # TCS paid this much to use Tata Group branding. India's largest IT company, Tata [Consultancy Services](https://answers.mindstick.com/qa/113555/how-can-startups-benefit-from-engineering-consultancy-services-in-india) (TCS), paid Rs 77 lakh to Tata Group's parent company, Tata Group, to use the Tata logo. The income-tax appellate tribunal allowed the payment to Tata Sons as a business deduction. This is not the first time TCS has faced tax [litigation](https://answers.mindstick.com/qa/116546/when-is-it-better-to-hire-a-litigation-lawyer-in-dubai-instead-of-opting-for-arbitration) on this issue, with similar disputes in the past. ITAT's Mumbai bench approved the Rs 77 lakh payment as a business deduction, lowering taxable profits and income-tax outgo. Other group [companies](https://yourviews.mindstick.com/view/85554/why-must-companies-have-a-profile-page-on-mindstick), such as Tata Chemicals, have also faced similar tax litigation. **[Subscription](https://www.mindstick.com/news/3093/meta-launches-quest-subscription-for-vr-headsets) fees for all members of the group** Under the Tata brand [agreement](https://yourviews.mindstick.com/view/88513/what-to-look-for-in-a-retainer-agreement-with-defence-lawyers-in-dubai), all companies in the group fold must pay annual subscription fees to Tata Sons, the registered owner of the 'Tata' name. Under the Tata Brand Equity and [Business Promotion](https://answers.mindstick.com/qa/105661/how-to-use-instagram-for-business-promotion) (TBEBP) scheme, group companies using the Tata brand must pay 0.25% of annual revenue or 5% of the profit before tax. The royalty payment is charged on revenues generated, not profits made, regardless of whether the entity is a loss-making entity. ## TCS case Tata Sons (TCS) has been denied a substantial deduction for a payment of Rs 77 lakh as a capital expenditure by the Income-tax Tribunal (ITAT). TCS argued that the subscription fees provided shareable [resources](https://yourviews.mindstick.com/view/293/renovation-causes-wastage-of-resources) for the Tata Group, which helps boost its image and sales. However, the company argued that the payment cannot be treated as a capital expenditure as it is recurring and tax at source has been deducted on making payment to Tata Sons. Tata Sons declined to comment on the matter. The company's [submission](https://www.mindstick.com/forum/156176/what-is-a-directory-submission) to the ITAT bench emphasized the [importance](https://www.mindstick.com/articles/13099/the-importance-of-machine-learning-service-providers) of sharing resources and promoting the collective image of the Tata Group. \ --- Original Source: https://www.mindstick.com/news/3360/tcs-paid-this-much-to-use-tata-group-branding Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.