https://www.taxtmi.com/caselaws?id=183261 Payment for an off-the-shelf software copy supplied under a limited licence was not royalty because no copyright rights were transferred. The recipient could only use the software as a copyrighted article and was barred from copying, modifying, reverse engineering, sublicensing, or commercially exploiting it. On that footing, the amount was treated as consideration for purchase of a copyrighted article, not for use of, or right to use, copyright, so no tax was deductible at source under section 195. The foreign recipient's income was characterised as business income, and absent a permanent establishment in India, it was not taxable in India. en-us Fri, 26 Nov 2010 00:00:00 +0530 Fri, 03 Jun 2016 11:19:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183261 Payment for an off-the-shelf software copy supplied under a limited licence was not royalty because no copyright rights were transferred. The recipient could only use the software as a copyrighted article and was barred from copying, modifying, reverse engineering, sublicensing, or commercially exploiting it. On that footing, the amount was treated as consideration for purchase of a copyrighted article, not for use of, or right to use, copyright, so no tax was deductible at source under section 195. The foreign recipient's income was characterised as business income, and absent a permanent establishment in India, it was not taxable in India. Case-Laws Income Tax Fri, 26 Nov 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183261