https://www.taxtmi.com/caselaws?id=185634 Consideration for distribution of software products under a licensing arrangement was treated as royalty because the distributor and end user were permitted to copy, install and use the software while copyright and other intellectual property rights remained with the non-resident supplier. The Tribunal followed binding jurisdictional High Court authority and applied section 9(1)(vi) of the Income-tax Act and Article 12 of the India-USA DTAA to conclude that the receipts were not simple sale proceeds but payments for use of copyright rights. On that basis, tax was required to be deducted at source, and the addition and first appellate order were sustained. en-us Fri, 13 Apr 2012 00:00:00 +0530 Mon, 22 Aug 2016 13:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185634 Consideration for distribution of software products under a licensing arrangement was treated as royalty because the distributor and end user were permitted to copy, install and use the software while copyright and other intellectual property rights remained with the non-resident supplier. The Tribunal followed binding jurisdictional High Court authority and applied section 9(1)(vi) of the Income-tax Act and Article 12 of the India-USA DTAA to conclude that the receipts were not simple sale proceeds but payments for use of copyright rights. On that basis, tax was required to be deducted at source, and the addition and first appellate order were sustained. Case-Laws Income Tax Fri, 13 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185634