https://www.taxtmi.com/caselaws?id=419334 Software receipts under the BREW and test tools agreements were examined under section 9(1)(vi) of the Income-tax Act and Article 12 of the India-USA DTAA. The governing distinction is between a transfer of copyright rights and a limited right to use a copyrighted article. Where agreements grant software-use rights without transferring copyright or rights to commercially exploit the copyright, the consideration is not royalty. Applying this principle, BREW and test tools receipts were treated as non-taxable royalty receipts, and the related additions were deleted. en-us Tue, 16 Nov 2021 00:00:00 +0530 Wed, 09 Mar 2022 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=419334 Software receipts under the BREW and test tools agreements were examined under section 9(1)(vi) of the Income-tax Act and Article 12 of the India-USA DTAA. The governing distinction is between a transfer of copyright rights and a limited right to use a copyrighted article. Where agreements grant software-use rights without transferring copyright or rights to commercially exploit the copyright, the consideration is not royalty. Applying this principle, BREW and test tools receipts were treated as non-taxable royalty receipts, and the related additions were deleted. Case-Laws Income Tax Tue, 16 Nov 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=419334