https://www.taxtmi.com/caselaws?id=446211 ITAT Delhi ruled in favor of a US-incorporated non-resident corporate assessee regarding cost-to-cost reimbursement of software license expenses from Indian subsidiaries. The tribunal held that such reimbursements do not constitute taxable royalty income under India-USA DTAA provisions. The assessee purchased shrink-wrapped software from third-party vendors and distributed to group entities without owning copyright or intellectual property rights. Since the assessee merely sold copyrighted articles rather than transferring copyright usage rights, and no evidence showed markup inclusion in reimbursements, the receipts were not taxable as royalty. The addition was directed to be deleted. en-us Wed, 20 Sep 2023 00:00:00 +0530 Tue, 28 Nov 2023 07:42:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446211 ITAT Delhi ruled in favor of a US-incorporated non-resident corporate assessee regarding cost-to-cost reimbursement of software license expenses from Indian subsidiaries. The tribunal held that such reimbursements do not constitute taxable royalty income under India-USA DTAA provisions. The assessee purchased shrink-wrapped software from third-party vendors and distributed to group entities without owning copyright or intellectual property rights. Since the assessee merely sold copyrighted articles rather than transferring copyright usage rights, and no evidence showed markup inclusion in reimbursements, the receipts were not taxable as royalty. The addition was directed to be deleted. Case-Laws Income Tax Wed, 20 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446211