https://www.taxtmi.com/caselaws?id=462127 The Delhi HC reiterated that royalty arises only where a payer obtains the use of, or right to use, copyright or another protected proprietary right under Article 12(3) of the India-Ireland DTAA and Section 9(1)(vi) of the Income-tax Act. Applying Engineering Analysis, it held that subscription payments for cloud-based software access involve only access to services or copyrighted material, not any transfer of copyright rights. The court found no basis to confine the Supreme Court ruling to embedded software or to treat cloud subscription fees differently. Accordingly, such payments are not royalty under the treaty or the Act, and the revenue appeal fails. en-us Tue, 14 May 2024 00:00:00 +0530 Mon, 26 May 2025 19:07:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462127 The Delhi HC reiterated that royalty arises only where a payer obtains the use of, or right to use, copyright or another protected proprietary right under Article 12(3) of the India-Ireland DTAA and Section 9(1)(vi) of the Income-tax Act. Applying Engineering Analysis, it held that subscription payments for cloud-based software access involve only access to services or copyrighted material, not any transfer of copyright rights. The court found no basis to confine the Supreme Court ruling to embedded software or to treat cloud subscription fees differently. Accordingly, such payments are not royalty under the treaty or the Act, and the revenue appeal fails. Case-Laws Income Tax Tue, 14 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462127