https://www.taxtmi.com/caselaws?id=277880 Receipts from the sale and distribution of software products to Indian distributors were held not to be royalty under the India-Ireland DTAA or the Income-tax Act. The arrangement gave only a non-exclusive, non-transferable right to supply shrink-wrap software, while copyright ownership remained with the assessee and the agreements barred copying, reverse engineering, sublicensing, and other copyright exploitation. Because the payer obtained only a copyrighted article and no right to use or exploit copyright, the treaty definition of royalty was not satisfied. Domestic law amendments could not expand the treaty meaning, so the software distribution receipts were not taxable in India as royalty. en-us Wed, 09 May 2018 00:00:00 +0530 Thu, 27 Dec 2018 15:58:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277880 Receipts from the sale and distribution of software products to Indian distributors were held not to be royalty under the India-Ireland DTAA or the Income-tax Act. The arrangement gave only a non-exclusive, non-transferable right to supply shrink-wrap software, while copyright ownership remained with the assessee and the agreements barred copying, reverse engineering, sublicensing, and other copyright exploitation. Because the payer obtained only a copyrighted article and no right to use or exploit copyright, the treaty definition of royalty was not satisfied. Domestic law amendments could not expand the treaty meaning, so the software distribution receipts were not taxable in India as royalty. Case-Laws Income Tax Wed, 09 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277880