https://www.taxtmi.com/caselaws?id=427580 Payments by a resident distributor to a non-resident software supplier under a distribution agreement were held not to be royalty because the arrangement conferred only a non-exclusive right to market and resell software, without any transfer of copyright or right to reproduce it. The agreement reserved ownership and intellectual property rights with the foreign supplier and restricted alteration or copyright exploitation. Since the sum was not chargeable to tax in India on that basis, no obligation arose under section 195 to deduct tax at source, and the payer could not be treated as an assessee in default under section 201 or section 201(1A). en-us Fri, 25 Feb 2022 00:00:00 +0530 Mon, 12 Sep 2022 11:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=427580 Payments by a resident distributor to a non-resident software supplier under a distribution agreement were held not to be royalty because the arrangement conferred only a non-exclusive right to market and resell software, without any transfer of copyright or right to reproduce it. The agreement reserved ownership and intellectual property rights with the foreign supplier and restricted alteration or copyright exploitation. Since the sum was not chargeable to tax in India on that basis, no obligation arose under section 195 to deduct tax at source, and the payer could not be treated as an assessee in default under section 201 or section 201(1A). Case-Laws Income Tax Fri, 25 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=427580