https://www.taxtmi.com/caselaws?id=408617 Receipts from sale of software licence were treated as business receipts, not royalty, because royalty under Article 12 of the India-USA DTAA and section 9(1)(vi) arises only where rights in copyright are transferred; the Tribunal found no such transfer and treated the payments as sale of software/licence. It also held that Article 7 business profits could not be taxed in India because the foreign enterprise had no permanent establishment in India under Article 5. For the later year, although Explanation 4 to section 9(1)(vi) applied, Article 90(2) required the more beneficial treaty position to prevail, so the receipts remained non-taxable in India. en-us Tue, 15 Jun 2021 00:00:00 +0530 Wed, 16 Jun 2021 10:37:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=408617 Receipts from sale of software licence were treated as business receipts, not royalty, because royalty under Article 12 of the India-USA DTAA and section 9(1)(vi) arises only where rights in copyright are transferred; the Tribunal found no such transfer and treated the payments as sale of software/licence. It also held that Article 7 business profits could not be taxed in India because the foreign enterprise had no permanent establishment in India under Article 5. For the later year, although Explanation 4 to section 9(1)(vi) applied, Article 90(2) required the more beneficial treaty position to prevail, so the receipts remained non-taxable in India. Case-Laws Income Tax Tue, 15 Jun 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=408617