https://www.taxtmi.com/caselaws?id=404016 Consideration for sale of software licences to end users, distributors and resellers is not royalty under Article 12 of the India-USA DTAA where the purchaser receives only the product for onward sale and no right to copy, reproduce, or commercially exploit the copyright. The agreements showed that intellectual property rights remained with the assessee, and the reseller or distributor role was limited to facilitating sales. On that basis, direct sales and routed sales were treated alike and characterised as business income, not royalty. In the absence of a permanent establishment in India, the receipts were not taxable in India and the adjustment was unsustainable. en-us Mon, 11 Jan 2021 00:00:00 +0530 Fri, 12 Feb 2021 23:13:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404016 Consideration for sale of software licences to end users, distributors and resellers is not royalty under Article 12 of the India-USA DTAA where the purchaser receives only the product for onward sale and no right to copy, reproduce, or commercially exploit the copyright. The agreements showed that intellectual property rights remained with the assessee, and the reseller or distributor role was limited to facilitating sales. On that basis, direct sales and routed sales were treated alike and characterised as business income, not royalty. In the absence of a permanent establishment in India, the receipts were not taxable in India and the adjustment was unsustainable. Case-Laws Income Tax Mon, 11 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404016