https://www.taxtmi.com/caselaws?id=179572 Payments for importing standard software packages were not royalty because acquisition of a copyrighted article is distinct from use or exploitation of copyright. Section 9(1)(vi) of the Income-tax Act targets consideration for rights in copyright or similar intellectual property, while the India-USA treaty, read with section 90(2), was treated as more beneficial and limited royalty to use of, or right to use, copyright. The software was treated as goods, not a copyright licence, and the non-resident supplier had no permanent establishment in India. Tax was therefore not deductible at source under section 195, and the demand under sections 201(1) and 201(1A) failed. en-us Sun, 31 Dec 2006 00:00:00 +0530 Thu, 08 Feb 2024 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179572 Payments for importing standard software packages were not royalty because acquisition of a copyrighted article is distinct from use or exploitation of copyright. Section 9(1)(vi) of the Income-tax Act targets consideration for rights in copyright or similar intellectual property, while the India-USA treaty, read with section 90(2), was treated as more beneficial and limited royalty to use of, or right to use, copyright. The software was treated as goods, not a copyright licence, and the non-resident supplier had no permanent establishment in India. Tax was therefore not deductible at source under section 195, and the demand under sections 201(1) and 201(1A) failed. Case-Laws Income Tax Sun, 31 Dec 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179572