https://www.taxtmi.com/caselaws?id=312379 Consideration for sale of software products to a distributor was analysed under section 9(1)(vi) of the Income-tax Act and the copyright definition in section 14(1)(a) of the Copyright Act. A licence allowing duplication or reproduction was treated as a transfer of copyright, whereas supply of software for onward resale without any right to copy was treated as a transfer of a copyrighted article. On the agreement's terms, the distributor received only software products for resale and no right to reproduce or exploit the software. The India-USA DTAA Article 12(3) was read as covering payment for use of, or right to use, copyright, not a copyrighted product. The amount was therefore not royalty and, if taxable at all, only as business profits. en-us Mon, 28 Nov 2011 00:00:00 +0530 Thu, 09 May 2024 14:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312379 Consideration for sale of software products to a distributor was analysed under section 9(1)(vi) of the Income-tax Act and the copyright definition in section 14(1)(a) of the Copyright Act. A licence allowing duplication or reproduction was treated as a transfer of copyright, whereas supply of software for onward resale without any right to copy was treated as a transfer of a copyrighted article. On the agreement's terms, the distributor received only software products for resale and no right to reproduce or exploit the software. The India-USA DTAA Article 12(3) was read as covering payment for use of, or right to use, copyright, not a copyrighted product. The amount was therefore not royalty and, if taxable at all, only as business profits. Case-Laws Income Tax Mon, 28 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312379