https://www.taxtmi.com/caselaws?id=210758 AAR held that payments by the Indian distributor to the foreign company for software sales, downloads and subscription updates constitute "royalty" under s.9(1)(vi) of the Income-tax Act and Article 12 of the India-Australia DTAA (Article 12 being broader). The subscription/updates are royalty, not FTS. The amounts are taxable in India under Article 12.2, and the Indian distributor must withhold tax under s.195 at 10% of the gross royalty. The foreign firm's PE argument was not accepted. en-us Mon, 06 Feb 2012 00:00:00 +0530 Mon, 18 Aug 2025 17:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=210758 AAR held that payments by the Indian distributor to the foreign company for software sales, downloads and subscription updates constitute "royalty" under s.9(1)(vi) of the Income-tax Act and Article 12 of the India-Australia DTAA (Article 12 being broader). The subscription/updates are royalty, not FTS. The amounts are taxable in India under Article 12.2, and the Indian distributor must withhold tax under s.195 at 10% of the gross royalty. The foreign firm's PE argument was not accepted. Case-Laws Income Tax Mon, 06 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=210758