https://www.taxtmi.com/caselaws?id=756015 Consideration paid for computer software under a distribution or end-user licence arrangement is not royalty under Section 9(1)(vi) unless the payer is granted any right or interest in the copyright. Applying the Supreme Court ruling in Engineering Analysis Centre of Excellence Pvt. Ltd., the Bombay HC noted that where no copyright right is transferred, the non-resident recipient does not earn India-taxable income on that basis and the payer has no obligation to deduct tax at source under Section 195. Applicable DTAAs were also treated as supporting this result. The software payments were therefore not taxable as royalty and no TDS liability arose. en-us Thu, 18 Jul 2024 00:00:00 +0530 Wed, 24 Jul 2024 10:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756015 Consideration paid for computer software under a distribution or end-user licence arrangement is not royalty under Section 9(1)(vi) unless the payer is granted any right or interest in the copyright. Applying the Supreme Court ruling in Engineering Analysis Centre of Excellence Pvt. Ltd., the Bombay HC noted that where no copyright right is transferred, the non-resident recipient does not earn India-taxable income on that basis and the payer has no obligation to deduct tax at source under Section 195. Applicable DTAAs were also treated as supporting this result. The software payments were therefore not taxable as royalty and no TDS liability arose. Case-Laws Income Tax Thu, 18 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756015