https://www.taxtmi.com/caselaws?id=313060 A non-exclusive, non-transferable licence to use software, with restrictions on copying, modification, reverse engineering and further exploitation, was treated as a transfer of a copyrighted article rather than a transfer of copyright. Applying the Supreme Court distinction between copyright rights and copyrighted articles, the ITAT Delhi held that mere user rights, even with limited sub-licensing for specified use, do not amount to a copyright transfer. It also noted that where the DTAA definition of royalty is narrower than the domestic amendment, the treaty prevails. On that basis, consideration for supply of software was not taxable as royalty and the assessee's appeal succeeded. en-us Mon, 01 Aug 2022 00:00:00 +0530 Wed, 08 May 2024 11:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313060 A non-exclusive, non-transferable licence to use software, with restrictions on copying, modification, reverse engineering and further exploitation, was treated as a transfer of a copyrighted article rather than a transfer of copyright. Applying the Supreme Court distinction between copyright rights and copyrighted articles, the ITAT Delhi held that mere user rights, even with limited sub-licensing for specified use, do not amount to a copyright transfer. It also noted that where the DTAA definition of royalty is narrower than the domestic amendment, the treaty prevails. On that basis, consideration for supply of software was not taxable as royalty and the assessee's appeal succeeded. Case-Laws Income Tax Mon, 01 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313060