https://www.taxtmi.com/caselaws?id=419334 Consideration for software-related arrangements is not royalty where the recipient is granted only a limited right to use a copyrighted article and no right in the underlying copyright itself. In the BREW agreement, the Tribunal applied this distinction and, following earlier years and the jurisdictional High Court, treated the receipts as not taxable as royalty under section 9(1)(vi) and article 12 of the India-USA DTAA. The same reasoning was applied to test tools receipts, which were held on identical facts to fall outside royalty income. The article thus records deletion of the related additions on the footing that mere software use rights do not amount to transfer of copyright rights. 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 Consideration for software-related arrangements is not royalty where the recipient is granted only a limited right to use a copyrighted article and no right in the underlying copyright itself. In the BREW agreement, the Tribunal applied this distinction and, following earlier years and the jurisdictional High Court, treated the receipts as not taxable as royalty under section 9(1)(vi) and article 12 of the India-USA DTAA. The same reasoning was applied to test tools receipts, which were held on identical facts to fall outside royalty income. The article thus records deletion of the related additions on the footing that mere software use rights do not amount to transfer of copyright rights. Case-Laws Income Tax Tue, 16 Nov 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=419334