https://www.taxtmi.com/caselaws?id=423669 Receipts from supply of software products to Indian distributors and end users were held not to constitute royalty under section 9(1)(vi) of the Income-tax Act, 1961 or Article 12 of the India-USA DTAA because the arrangements granted only a limited right to resell or use the software and did not transfer any rights in the copyright itself. Applying Engineering Analysis, the ruling reiterated that royalty arises only where copyright rights are granted, not where a copyrighted article is merely sold or licensed on a non-exclusive, non-transferable basis. The receipts were therefore treated as business income and not chargeable to tax in India under the treaty or the pre-amended provision. en-us Thu, 26 May 2022 00:00:00 +0530 Sat, 11 Jun 2022 09:00:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=423669 Receipts from supply of software products to Indian distributors and end users were held not to constitute royalty under section 9(1)(vi) of the Income-tax Act, 1961 or Article 12 of the India-USA DTAA because the arrangements granted only a limited right to resell or use the software and did not transfer any rights in the copyright itself. Applying Engineering Analysis, the ruling reiterated that royalty arises only where copyright rights are granted, not where a copyrighted article is merely sold or licensed on a non-exclusive, non-transferable basis. The receipts were therefore treated as business income and not chargeable to tax in India under the treaty or the pre-amended provision. Case-Laws Income Tax Thu, 26 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=423669