https://www.taxtmi.com/caselaws?id=339927 Consideration for standardised software purchased for internal use was treated as payment for a copyrighted article, not royalty, because the buyer acquired only a non-exclusive right to use the product and no copyright rights. The analysis distinguished use of software from use of copyright in software, relying on the Copyright Act framework on exclusive rights and limited exceptions for operational copying or backup use. It also stated that the India-USA DTAA definition of royalty is narrower and more beneficial than the domestic definition, so retrospective amendments to section 9(1)(vi) cannot expand the treaty meaning. On that basis, the amount was not royalty and, if taxable at all, would be business income in the recipient's hands. en-us Wed, 08 Mar 2017 00:00:00 +0530 Fri, 10 Mar 2017 06:19:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339927 Consideration for standardised software purchased for internal use was treated as payment for a copyrighted article, not royalty, because the buyer acquired only a non-exclusive right to use the product and no copyright rights. The analysis distinguished use of software from use of copyright in software, relying on the Copyright Act framework on exclusive rights and limited exceptions for operational copying or backup use. It also stated that the India-USA DTAA definition of royalty is narrower and more beneficial than the domestic definition, so retrospective amendments to section 9(1)(vi) cannot expand the treaty meaning. On that basis, the amount was not royalty and, if taxable at all, would be business income in the recipient's hands. Case-Laws Income Tax Wed, 08 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339927