https://www.taxtmi.com/caselaws?id=390324 Non-exclusive, non-transferable software licence payments to a foreign group company were treated as royalty under the India-Italy DTAA and section 9(1)(vi), because the licence was regarded as involving copyright-related rights within the treaty's wide royalty definition. On that basis, the consideration was held subject to tax withholding under section 195, and failure to deduct tax justified disallowance under section 40(a)(i). The Tribunal relied on the jurisdictional High Court's later view approving the revenue-favouring interpretation of software payments as royalty, which bound its approach to the treaty issue. en-us Mon, 23 Dec 2019 00:00:00 +0530 Sun, 29 Dec 2019 10:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390324 Non-exclusive, non-transferable software licence payments to a foreign group company were treated as royalty under the India-Italy DTAA and section 9(1)(vi), because the licence was regarded as involving copyright-related rights within the treaty's wide royalty definition. On that basis, the consideration was held subject to tax withholding under section 195, and failure to deduct tax justified disallowance under section 40(a)(i). The Tribunal relied on the jurisdictional High Court's later view approving the revenue-favouring interpretation of software payments as royalty, which bound its approach to the treaty issue. Case-Laws Income Tax Mon, 23 Dec 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390324