https://www.taxtmi.com/caselaws?id=331345 Receipts from software bundled with diamond-scanning machines were treated as part of the sale consideration of an integrated system, not royalty under section 9(1)(vi) or Article 12(3) of the India-Israel DTAA, because the software had no independent commercial use and no rights in the copyright were transferred. The distinction between a copyrighted article and a copyright right was applied, and the treaty definition of royalty was held to be narrower than the domestic law definition. A later amendment to section 9(1)(vi) could not expand the treaty meaning without a corresponding treaty amendment. In the absence of a permanent establishment in India, the receipts were also not taxable as business income. en-us Wed, 29 Jun 2016 00:00:00 +0530 Sat, 20 Aug 2016 08:45:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331345 Receipts from software bundled with diamond-scanning machines were treated as part of the sale consideration of an integrated system, not royalty under section 9(1)(vi) or Article 12(3) of the India-Israel DTAA, because the software had no independent commercial use and no rights in the copyright were transferred. The distinction between a copyrighted article and a copyright right was applied, and the treaty definition of royalty was held to be narrower than the domestic law definition. A later amendment to section 9(1)(vi) could not expand the treaty meaning without a corresponding treaty amendment. In the absence of a permanent establishment in India, the receipts were also not taxable as business income. Case-Laws Income Tax Wed, 29 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331345