https://www.taxtmi.com/caselaws?id=183264 Payments for operational software supplied under a limited licence, without any transfer of copyright or rights to modify, reverse engineer, sublicense, or commercially exploit the software, were treated as consideration for a copyrighted article rather than royalty. On that basis, the sums did not fall within the definition of royalty under the Income-tax Act or the applicable treaty. As the non-resident suppliers had no permanent establishment in India, the receipts were characterised as business income not chargeable to tax in India, and no withholding obligation arose under section 195. The issue was decided in favour of the assessee. en-us Fri, 26 Nov 2010 00:00:00 +0530 Fri, 03 Jun 2016 11:21:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183264 Payments for operational software supplied under a limited licence, without any transfer of copyright or rights to modify, reverse engineer, sublicense, or commercially exploit the software, were treated as consideration for a copyrighted article rather than royalty. On that basis, the sums did not fall within the definition of royalty under the Income-tax Act or the applicable treaty. As the non-resident suppliers had no permanent establishment in India, the receipts were characterised as business income not chargeable to tax in India, and no withholding obligation arose under section 195. The issue was decided in favour of the assessee. Case-Laws Income Tax Fri, 26 Nov 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183264