https://www.taxtmi.com/caselaws?id=357969 Payments to non-resident vendors for software supplied for use in a wireless network were treated as consideration for a copyrighted article, not for transfer of copyright or a right to use copyright. The vendors retained ownership of the software and source code, and the purchaser's rights were confined to internal use, with restrictions on copying, sublicensing, modification, reverse engineering, decoding, and commercial exploitation. Although the domestic royalty definition was broader, the applicable DTAA controlled and did not treat such software payments as royalty. The result was that no tax was required to be withheld at source on these payments, and disallowance under section 40(a)(i) was not attracted. en-us Fri, 02 Feb 2018 00:00:00 +0530 Tue, 03 Apr 2018 08:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357969 Payments to non-resident vendors for software supplied for use in a wireless network were treated as consideration for a copyrighted article, not for transfer of copyright or a right to use copyright. The vendors retained ownership of the software and source code, and the purchaser's rights were confined to internal use, with restrictions on copying, sublicensing, modification, reverse engineering, decoding, and commercial exploitation. Although the domestic royalty definition was broader, the applicable DTAA controlled and did not treat such software payments as royalty. The result was that no tax was required to be withheld at source on these payments, and disallowance under section 40(a)(i) was not attracted. Case-Laws Income Tax Fri, 02 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357969