https://www.taxtmi.com/caselaws?id=175815 Periodical payments to a non-resident for internet-based software use were treated as royalty and fees for included services, because the licence granted the right to use software infrastructure on the foreign server platform and the consideration was linked to usage sessions. The analysis mapped article 12(3)(b) and article 12(4)(a) of the India-USA treaty to sections 9(1)(vi) and 9(1)(vii) of the Income-tax Act, 1961. As the receipts fell within article 12, article 7 on business profits did not apply, and the absence of a permanent establishment in India did not remove Indian taxability. Section 195 was therefore attracted. en-us Mon, 06 Nov 2006 00:00:00 +0530 Mon, 07 Dec 2015 12:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175815 Periodical payments to a non-resident for internet-based software use were treated as royalty and fees for included services, because the licence granted the right to use software infrastructure on the foreign server platform and the consideration was linked to usage sessions. The analysis mapped article 12(3)(b) and article 12(4)(a) of the India-USA treaty to sections 9(1)(vi) and 9(1)(vii) of the Income-tax Act, 1961. As the receipts fell within article 12, article 7 on business profits did not apply, and the absence of a permanent establishment in India did not remove Indian taxability. Section 195 was therefore attracted. Case-Laws Income Tax Mon, 06 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175815