https://www.taxtmi.com/caselaws?id=411280 Software maintenance charges paid to an overseas group company were examined for possible classification as royalty under the India-USA DTAA and for consequent disallowance for failure to deduct tax at source. The later Supreme Court ruling on software payments was applied as the governing principle: a licence to use copyrighted software, without transfer of copyright rights, is not royalty, because the payer acquires only a right to use the software. As the agreement terms had not been tested against that ruling, the matter was remitted to the Assessing Officer for fresh consideration after hearing the assessee. en-us Wed, 11 Aug 2021 00:00:00 +0530 Wed, 12 Oct 2022 16:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=411280 Software maintenance charges paid to an overseas group company were examined for possible classification as royalty under the India-USA DTAA and for consequent disallowance for failure to deduct tax at source. The later Supreme Court ruling on software payments was applied as the governing principle: a licence to use copyrighted software, without transfer of copyright rights, is not royalty, because the payer acquires only a right to use the software. As the agreement terms had not been tested against that ruling, the matter was remitted to the Assessing Officer for fresh consideration after hearing the assessee. Case-Laws Income Tax Wed, 11 Aug 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=411280