https://www.taxtmi.com/caselaws?id=343896 A restricted, non-transferable software licence used only for internal business purposes, with no right to copy, modify, sub-license, distribute or commercially exploit the software, is treated as payment for a copyrighted article rather than for use of the copyright itself. On that basis, the payment is not royalty under the Income-tax Act or the treaty definition considered, and no tax deduction at source arises. The text also reflects the jurisdictional High Court view that such software payments fall outside section 9(1)(vi), so the payer is not to be treated as an assessee in default. en-us Tue, 28 Feb 2017 00:00:00 +0530 Mon, 05 Jun 2017 07:09:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=343896 A restricted, non-transferable software licence used only for internal business purposes, with no right to copy, modify, sub-license, distribute or commercially exploit the software, is treated as payment for a copyrighted article rather than for use of the copyright itself. On that basis, the payment is not royalty under the Income-tax Act or the treaty definition considered, and no tax deduction at source arises. The text also reflects the jurisdictional High Court view that such software payments fall outside section 9(1)(vi), so the payer is not to be treated as an assessee in default. Case-Laws Income Tax Tue, 28 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=343896