https://www.taxtmi.com/caselaws?id=307838 The High Court of Karnataka ruled in favor of the appellant company in an income-tax appeal concerning royalty payments for licensed software. Citing a Supreme Court judgment, the High Court held that payments to non-resident software manufacturers by Indian end-users did not constitute royalty under the Income Tax Act. Consequently, the court set aside the Tribunal's order, relieving the company from tax deduction obligations under Section 195 of the Act. This decision aligned with Double Taxation Avoidance Agreements and established a precedent for similar cases, providing relief to the appellant company. en-us Tue, 03 Aug 2021 00:00:00 +0530 Thu, 11 May 2023 16:45:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=307838 The High Court of Karnataka ruled in favor of the appellant company in an income-tax appeal concerning royalty payments for licensed software. Citing a Supreme Court judgment, the High Court held that payments to non-resident software manufacturers by Indian end-users did not constitute royalty under the Income Tax Act. Consequently, the court set aside the Tribunal's order, relieving the company from tax deduction obligations under Section 195 of the Act. This decision aligned with Double Taxation Avoidance Agreements and established a precedent for similar cases, providing relief to the appellant company. Case-Laws Income Tax Tue, 03 Aug 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=307838