https://www.taxtmi.com/caselaws?id=211001 Consideration for supply of shrink-wrap software is treated as payment for a copyrighted article, not as royalty, where the distributor or end user acquires only a right to use the software and no copyright rights or commercial exploitation rights are transferred. On that basis, the receipt is not taxable in India as royalty under the Indo-US DTAA or the Income-tax Act. Once characterised as business income, it is taxable in India only if attributable to a permanent establishment; in the absence of a permanent establishment, no Indian tax arises. Interest under section 234B also does not survive where the income itself is not taxable in India. en-us Wed, 08 Feb 2012 00:00:00 +0530 Wed, 03 Dec 2025 14:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211001 Consideration for supply of shrink-wrap software is treated as payment for a copyrighted article, not as royalty, where the distributor or end user acquires only a right to use the software and no copyright rights or commercial exploitation rights are transferred. On that basis, the receipt is not taxable in India as royalty under the Indo-US DTAA or the Income-tax Act. Once characterised as business income, it is taxable in India only if attributable to a permanent establishment; in the absence of a permanent establishment, no Indian tax arises. Interest under section 234B also does not survive where the income itself is not taxable in India. Case-Laws Income Tax Wed, 08 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211001