https://www.taxtmi.com/caselaws?id=343178 Consideration paid for shrink-wrapped software acquired for internal use under a non-exclusive, non-transferable licence, without transfer of copyright or any right to exploit it, is treated as payment for a copyrighted article and not royalty. The analysis follows the view that the treaty definition of royalty under the India-USA DTAA prevails over the expanded domestic definition in section 9(1)(vi), and that retrospective domestic amendments cannot enlarge the treaty meaning. On that basis, the payment is not chargeable to tax in India and no tax withholding obligation arises under section 195. en-us Thu, 18 May 2017 00:00:00 +0530 Wed, 02 Aug 2017 12:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=343178 Consideration paid for shrink-wrapped software acquired for internal use under a non-exclusive, non-transferable licence, without transfer of copyright or any right to exploit it, is treated as payment for a copyrighted article and not royalty. The analysis follows the view that the treaty definition of royalty under the India-USA DTAA prevails over the expanded domestic definition in section 9(1)(vi), and that retrospective domestic amendments cannot enlarge the treaty meaning. On that basis, the payment is not chargeable to tax in India and no tax withholding obligation arises under section 195. Case-Laws Income Tax Thu, 18 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=343178