https://www.taxtmi.com/caselaws?id=279917 Software licence fees may constitute royalty where the licencee obtains more than a bare right to use a copyrighted article and instead uses the embedded intellectual property as a base for creating derived commercial products; on the facts, the fee from one customer was treated as royalty, while the matter concerning the other customer was remanded for fresh examination due to the absence of a specific agreement and findings. Where the India-Germany DTAA caps the tax rate on royalty income, education cess and surcharge cannot be levied so as to exceed that treaty ceiling. The treaty rate was held to govern the levy. en-us Tue, 22 May 2018 00:00:00 +0530 Thu, 11 Apr 2019 05:10:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279917 Software licence fees may constitute royalty where the licencee obtains more than a bare right to use a copyrighted article and instead uses the embedded intellectual property as a base for creating derived commercial products; on the facts, the fee from one customer was treated as royalty, while the matter concerning the other customer was remanded for fresh examination due to the absence of a specific agreement and findings. Where the India-Germany DTAA caps the tax rate on royalty income, education cess and surcharge cannot be levied so as to exceed that treaty ceiling. The treaty rate was held to govern the levy. Case-Laws Income Tax Tue, 22 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279917