Tax treatment of systems software exempts lump-sum payments from income tax and withholding when bundled with hardware. Lump-sum payments for systems software supplied with hardware and imported by software exporters will not be liable to income-tax in India as royalty or otherwise and may be paid without deduction of tax at source under section 195(1); application software under an approved export scheme remains subject to income-tax on the licenser, and the concession applies for the current and subsequent financial years.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax treatment of systems software exempts lump-sum payments from income tax and withholding when bundled with hardware.
Lump-sum payments for systems software supplied with hardware and imported by software exporters will not be liable to income-tax in India as royalty or otherwise and may be paid without deduction of tax at source under section 195(1); application software under an approved export scheme remains subject to income-tax on the licenser, and the concession applies for the current and subsequent financial years.
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