https://www.taxtmi.com/caselaws?id=756260 Payment for a non-exclusive licence to use standard software for internal business purposes, without any transfer of copyright or any right to reproduce or commercially exploit the software, was not royalty under the India-UK DTAA or section 9(1)(vi) of the Income-tax Act. The treaty definition was held not wide enough to treat consideration for use of a copyrighted product as royalty, and section 90(2) required the more beneficial treaty position to prevail over the domestic provision. As no income was chargeable to tax in India, section 195 did not require tax deduction at source. The related issues of grossing up, interest, and penalty were consequential. en-us Fri, 12 Jul 2024 00:00:00 +0530 Mon, 05 Jan 2026 12:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756260 Payment for a non-exclusive licence to use standard software for internal business purposes, without any transfer of copyright or any right to reproduce or commercially exploit the software, was not royalty under the India-UK DTAA or section 9(1)(vi) of the Income-tax Act. The treaty definition was held not wide enough to treat consideration for use of a copyrighted product as royalty, and section 90(2) required the more beneficial treaty position to prevail over the domestic provision. As no income was chargeable to tax in India, section 195 did not require tax deduction at source. The related issues of grossing up, interest, and penalty were consequential. Case-Laws Income Tax Fri, 12 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756260