https://www.taxtmi.com/caselaws?id=290685 Receipts from sale of off-the-shelf software and related maintenance, support and upgrade services were held not to be royalty under section 9(1)(vi) or Article 12 of the India-Finland Tax Treaty. The Tribunal found that distributors had only a non-exclusive right to market and distribute the software, with no source code access, no right to modify or reproduce the software, and no right to exploit the underlying copyright; the payments were therefore for sale of copyrighted articles, not for transfer of copyright or a right to use it. It further held that the treaty's royalty definition was exhaustive and could not be expanded by retrospective domestic amendments absent a corresponding treaty change, so the receipts were taxed as business income. en-us Tue, 07 Jan 2020 00:00:00 +0530 Thu, 14 Nov 2024 10:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290685 Receipts from sale of off-the-shelf software and related maintenance, support and upgrade services were held not to be royalty under section 9(1)(vi) or Article 12 of the India-Finland Tax Treaty. The Tribunal found that distributors had only a non-exclusive right to market and distribute the software, with no source code access, no right to modify or reproduce the software, and no right to exploit the underlying copyright; the payments were therefore for sale of copyrighted articles, not for transfer of copyright or a right to use it. It further held that the treaty's royalty definition was exhaustive and could not be expanded by retrospective domestic amendments absent a corresponding treaty change, so the receipts were taxed as business income. Case-Laws Income Tax Tue, 07 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290685