https://www.taxtmi.com/caselaws?id=424040 Consideration for sale of software products is not royalty under Article 12 of the India-USA DTAA or the Income-tax Act where the transaction does not transfer copyright or any other legally cognisable rights in the software. The same principle applies to cloud services: receipts for online access to services, without transfer of rights in the underlying software or infrastructure and without any right of reproduction, are treated as service consideration rather than payment for use of, or right to use, copyright or equipment. The text relies on earlier coordinate bench precedent and later supporting jurisprudence to state that such receipts are not taxable as royalty. en-us Tue, 07 Jun 2022 00:00:00 +0530 Tue, 21 Jun 2022 08:56:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424040 Consideration for sale of software products is not royalty under Article 12 of the India-USA DTAA or the Income-tax Act where the transaction does not transfer copyright or any other legally cognisable rights in the software. The same principle applies to cloud services: receipts for online access to services, without transfer of rights in the underlying software or infrastructure and without any right of reproduction, are treated as service consideration rather than payment for use of, or right to use, copyright or equipment. The text relies on earlier coordinate bench precedent and later supporting jurisprudence to state that such receipts are not taxable as royalty. Case-Laws Income Tax Tue, 07 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424040