https://www.taxtmi.com/article/detailed?id=9700 Whether payments for imported computer software are royalty or proceeds of sale turns on the contractual rights granted and the applicable DTAA definition. The Supreme Court held that restrictive, non-transferable EULAs that do not convey reproduction or other proprietary copyright rights do not constitute royalty under typical treaty language; where software is embodied in a medium or resold under such licenses it is akin to a sale of goods. Treaty definitions prevail over broader domestic explanations, removing domestic withholding obligations where the DTAA excludes royalty characterization. en-us Thu, 04 Mar 2021 11:37:16 +0530 Thu, 04 Mar 2021 11:37:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=9700 Whether payments for imported computer software are royalty or proceeds of sale turns on the contractual rights granted and the applicable DTAA definition. The Supreme Court held that restrictive, non-transferable EULAs that do not convey reproduction or other proprietary copyright rights do not constitute royalty under typical treaty language; where software is embodied in a medium or resold under such licenses it is akin to a sale of goods. Treaty definitions prevail over broader domestic explanations, removing domestic withholding obligations where the DTAA excludes royalty characterization. Articles Income Tax Thu, 04 Mar 2021 11:37:16 +0530 https://www.taxtmi.com/article/detailed?id=9700