https://www.taxtmi.com/caselaws?id=240205 Consideration for software licences was held not to be royalty under Article 12(3) of the India-USA DTAA because the licence granted only a restricted, non-exclusive right to use the software for internal business purposes. The Court distinguished a copyright from a copyrighted article and held that mere use of software, including limited installation or backup copying, does not amount to transfer of rights in copyright. As no copyright rights were transferred, the treaty definition of royalty did not apply and the receipts were taxable, if at all, as business income under Article 7 rather than as royalty under the DTAA. en-us Fri, 22 Nov 2013 00:00:00 +0530 Mon, 26 May 2025 14:28:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=240205 Consideration for software licences was held not to be royalty under Article 12(3) of the India-USA DTAA because the licence granted only a restricted, non-exclusive right to use the software for internal business purposes. The Court distinguished a copyright from a copyrighted article and held that mere use of software, including limited installation or backup copying, does not amount to transfer of rights in copyright. As no copyright rights were transferred, the treaty definition of royalty did not apply and the receipts were taxable, if at all, as business income under Article 7 rather than as royalty under the DTAA. Case-Laws Income Tax Fri, 22 Nov 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=240205