https://www.taxtmi.com/caselaws?id=423669 The Supreme Court ruled in favor of the assessee in a tax dispute regarding the classification of payments received on the sale of software to Indian resellers/distributors as 'royalty' under the Income-tax Act and the India-USA Double Taxation Avoidance Agreement. The Court clarified that such payments for limited software use without copyright owner rights do not qualify as 'royalty' and are considered business income not taxable in India under the DTAA. The Tribunal also held that consideration for maintenance and technical support services does not constitute 'royalty,' setting aside the tax orders and penalty proceedings initiated by the Assessing Officer. 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 The Supreme Court ruled in favor of the assessee in a tax dispute regarding the classification of payments received on the sale of software to Indian resellers/distributors as 'royalty' under the Income-tax Act and the India-USA Double Taxation Avoidance Agreement. The Court clarified that such payments for limited software use without copyright owner rights do not qualify as 'royalty' and are considered business income not taxable in India under the DTAA. The Tribunal also held that consideration for maintenance and technical support services does not constitute 'royalty,' setting aside the tax orders and penalty proceedings initiated by the Assessing Officer. Case-Laws Income Tax Thu, 26 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=423669