https://www.taxtmi.com/caselaws?id=35357 A non-exclusive, non-transferable licence to use software for internal purposes, without transfer of any exclusive copyright rights, was treated as a supply of a copyrighted product rather than consideration for use of copyright, process, or equipment. The amount received was therefore not royalty under the Income-tax Act or the India-Japan DTAA. The distributor arrangement also did not create a permanent establishment because the resellers acted on a principal-to-principal basis, lacked authority to conclude contracts, did not maintain stock on the applicant's behalf, and were not shown to habitually secure orders for the applicant. In the absence of a permanent establishment, the receipts were not taxable in India as business profits. en-us Fri, 29 Jan 2010 00:00:00 +0530 Mon, 01 Dec 2025 17:21:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35357 A non-exclusive, non-transferable licence to use software for internal purposes, without transfer of any exclusive copyright rights, was treated as a supply of a copyrighted product rather than consideration for use of copyright, process, or equipment. The amount received was therefore not royalty under the Income-tax Act or the India-Japan DTAA. The distributor arrangement also did not create a permanent establishment because the resellers acted on a principal-to-principal basis, lacked authority to conclude contracts, did not maintain stock on the applicant's behalf, and were not shown to habitually secure orders for the applicant. In the absence of a permanent establishment, the receipts were not taxable in India as business profits. Case-Laws Income Tax Fri, 29 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35357