https://www.taxtmi.com/caselaws?id=206120 Consideration paid for a licence to use shrink-wrapped software was treated as royalty because the payer received only a limited right to use the software, not ownership or any modifiable intellectual property. The statutory definition in section 9(1)(vi) and the corresponding India-Switzerland DTAA provision were held to cover payment for the use of, or right to use, such software. As the remittance was taxable as royalty in India, tax deduction at source under section 195 was required, and failure to deduct justified treatment of the assessee as an assessee in default under section 201(1). The later Supreme Court ruling reversing the earlier Karnataka High Court view removed the assessee's contrary argument. en-us Fri, 05 Aug 2011 00:00:00 +0530 Sat, 20 Aug 2016 15:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206120 Consideration paid for a licence to use shrink-wrapped software was treated as royalty because the payer received only a limited right to use the software, not ownership or any modifiable intellectual property. The statutory definition in section 9(1)(vi) and the corresponding India-Switzerland DTAA provision were held to cover payment for the use of, or right to use, such software. As the remittance was taxable as royalty in India, tax deduction at source under section 195 was required, and failure to deduct justified treatment of the assessee as an assessee in default under section 201(1). The later Supreme Court ruling reversing the earlier Karnataka High Court view removed the assessee's contrary argument. Case-Laws Income Tax Fri, 05 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206120