https://www.taxtmi.com/article/detailed?id=5569 Payments for supply or licensing of software are taxable as royalty only when they effect a transfer of rights in the copyright itself; otherwise such receipts qualify as business profits. Where no proprietary copyright interest is parted-e.g., non exclusive, non transferable licences or sale of the copyrighted medium-the income is business in nature and, absent a permanent establishment in India, not taxable under domestic law or the India-US DTAA. Contractual substance (scope, exclusivity, reproduction and sublicensing rights) determines classification. en-us Mon, 14 Apr 2014 05:15:44 +0530 Mon, 14 Apr 2014 05:15:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5569 Payments for supply or licensing of software are taxable as royalty only when they effect a transfer of rights in the copyright itself; otherwise such receipts qualify as business profits. Where no proprietary copyright interest is parted-e.g., non exclusive, non transferable licences or sale of the copyrighted medium-the income is business in nature and, absent a permanent establishment in India, not taxable under domestic law or the India-US DTAA. Contractual substance (scope, exclusivity, reproduction and sublicensing rights) determines classification. Articles Income Tax Mon, 14 Apr 2014 05:15:44 +0530 https://www.taxtmi.com/article/detailed?id=5569