https://www.taxtmi.com/caselaws?id=215427 Payment for software acquired from a non-resident was treated as royalty because the licence granted only limited use and did not transfer ownership of the copyright. The right to install, copy and create backups was held to be part of the copyright itself, and the transaction was characterised as a transfer of rights in copyright rather than a mere sale of a physical medium. On that basis, the consideration fell within royalty under section 9(1)(vi) of the Income-tax Act, 1961 and the relevant DTAA, with the Copyright Act, 1957 supporting the conclusion that such acts would otherwise infringe copyright. The payer was therefore liable to deduct tax at source under section 195, and the appeal failed. en-us Thu, 22 Mar 2012 00:00:00 +0530 Mon, 06 Aug 2012 07:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215427 Payment for software acquired from a non-resident was treated as royalty because the licence granted only limited use and did not transfer ownership of the copyright. The right to install, copy and create backups was held to be part of the copyright itself, and the transaction was characterised as a transfer of rights in copyright rather than a mere sale of a physical medium. On that basis, the consideration fell within royalty under section 9(1)(vi) of the Income-tax Act, 1961 and the relevant DTAA, with the Copyright Act, 1957 supporting the conclusion that such acts would otherwise infringe copyright. The payer was therefore liable to deduct tax at source under section 195, and the appeal failed. Case-Laws Income Tax Thu, 22 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215427