https://www.taxtmi.com/caselaws?id=309438 Consideration paid for distribution or end-user use of computer software is analysed as payment for a copyrighted article, not for use of copyright, where the licence is non-exclusive and does not transfer any copyright or right to exploit it. Applying the Supreme Court principle relied upon in the text, such payments are not treated as royalty under section 9(1)(vi) of the Income-tax Act or Article 12 of the India-USA DTAA. The text further notes that, where the treaty definition is more beneficial, section 90(2) requires the DTAA definition to prevail, with the result that the payment is not taxable in India as royalty. en-us Mon, 18 Jul 2022 00:00:00 +0530 Sat, 02 Sep 2023 21:13:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=309438 Consideration paid for distribution or end-user use of computer software is analysed as payment for a copyrighted article, not for use of copyright, where the licence is non-exclusive and does not transfer any copyright or right to exploit it. Applying the Supreme Court principle relied upon in the text, such payments are not treated as royalty under section 9(1)(vi) of the Income-tax Act or Article 12 of the India-USA DTAA. The text further notes that, where the treaty definition is more beneficial, section 90(2) requires the DTAA definition to prevail, with the result that the payment is not taxable in India as royalty. Case-Laws Income Tax Mon, 18 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=309438