https://www.taxtmi.com/caselaws?id=306979 Consideration for supply of software copies was treated as business income, not royalty, following Engineering Analysis; absent a taxable royalty character and any taxable presence, no Indian tax liability arose on that stream. The alleged dependent agency permanent establishment also did not give rise to further attributable profits where the Indian agent was remunerated at arm's length for the functions performed, assets employed and risks assumed; in that position, the PE was tax-neutral and the revenue's attribution claim failed. The additions based on royalty characterisation and further profit attribution therefore could not survive. en-us Tue, 31 Aug 2021 00:00:00 +0530 Fri, 10 Mar 2023 20:56:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=306979 Consideration for supply of software copies was treated as business income, not royalty, following Engineering Analysis; absent a taxable royalty character and any taxable presence, no Indian tax liability arose on that stream. The alleged dependent agency permanent establishment also did not give rise to further attributable profits where the Indian agent was remunerated at arm's length for the functions performed, assets employed and risks assumed; in that position, the PE was tax-neutral and the revenue's attribution claim failed. The additions based on royalty characterisation and further profit attribution therefore could not survive. Case-Laws Income Tax Tue, 31 Aug 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=306979