https://www.taxtmi.com/caselaws?id=297887 Payment for a restricted software licence for internal use, without transfer of source code or any right to commercially exploit the software, is treated as consideration for a copyrighted article rather than a transfer of copyright rights. Where the applicable treaty definition of royalty is narrower than the domestic definition, the treaty meaning prevails and a retrospective domestic does not enlarge treaty scope unless the treaty is correspondingly amended. On that approach, software remittances are outside royalty under the treaty and no tax withholding obligation arises under section 195; consequently, there is no default liability under sections 201(1) and 201(1A). en-us Mon, 08 Jan 2018 00:00:00 +0530 Wed, 29 Sep 2021 11:02:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=297887 Payment for a restricted software licence for internal use, without transfer of source code or any right to commercially exploit the software, is treated as consideration for a copyrighted article rather than a transfer of copyright rights. Where the applicable treaty definition of royalty is narrower than the domestic definition, the treaty meaning prevails and a retrospective domestic does not enlarge treaty scope unless the treaty is correspondingly amended. On that approach, software remittances are outside royalty under the treaty and no tax withholding obligation arises under section 195; consequently, there is no default liability under sections 201(1) and 201(1A). Case-Laws Income Tax Mon, 08 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=297887