https://www.taxtmi.com/caselaws?id=206932 Payments for purchase and distribution of software were held not to constitute royalty under section 9(1)(vi) because the arrangement involved supply of a copyrighted product, not transfer of copyright. The distributor received no right to reproduce, modify, commercially exploit, or otherwise exploit the copyright; the contractual clauses were treated as incidental to distribution only. As the software was separately downloaded by end customers under licence from the foreign supplier and the assessee acted merely as a margin-based distributor, the payment was not chargeable as royalty. Consequently, no obligation to deduct tax at source under section 195 arose, and disallowance under section 40(a)(i) could not be sustained. en-us Fri, 16 Sep 2011 00:00:00 +0530 Tue, 15 Nov 2011 13:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206932 Payments for purchase and distribution of software were held not to constitute royalty under section 9(1)(vi) because the arrangement involved supply of a copyrighted product, not transfer of copyright. The distributor received no right to reproduce, modify, commercially exploit, or otherwise exploit the copyright; the contractual clauses were treated as incidental to distribution only. As the software was separately downloaded by end customers under licence from the foreign supplier and the assessee acted merely as a margin-based distributor, the payment was not chargeable as royalty. Consequently, no obligation to deduct tax at source under section 195 arose, and disallowance under section 40(a)(i) could not be sustained. Case-Laws Income Tax Fri, 16 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206932