https://www.taxtmi.com/caselaws?id=396971 Software and hardware supply receipts under a limited, non-exclusive and non-transferable licence that grants no rights in underlying copyright constitute consideration for copyrighted articles rather than royalty. The narrower royalty definition under the applicable tax treaty prevails where it is more beneficial than expanded domestic-law provisions. Consequently, such receipts are not taxable in India as royalty; in the absence of a permanent establishment, they are treated as business income not taxable in India. Alternate additions, interest and penalty issues do not arise once royalty characterisation fails. en-us Mon, 06 Jul 2020 00:00:00 +0530 Tue, 28 Jul 2020 14:34:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396971 Software and hardware supply receipts under a limited, non-exclusive and non-transferable licence that grants no rights in underlying copyright constitute consideration for copyrighted articles rather than royalty. The narrower royalty definition under the applicable tax treaty prevails where it is more beneficial than expanded domestic-law provisions. Consequently, such receipts are not taxable in India as royalty; in the absence of a permanent establishment, they are treated as business income not taxable in India. Alternate additions, interest and penalty issues do not arise once royalty characterisation fails. Case-Laws Income Tax Mon, 06 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396971