https://www.taxtmi.com/caselaws?id=795824 Outright payments for software acquired from a Malaysian associated enterprise, where accepted in transfer-pricing proceedings as an arm's-length acquisition of software product and related rights, are characterised as business income rather than royalty. Without a permanent establishment in India, the Malaysian enterprise's business income is not taxable in India under the treaty, so no withholding obligation arises. Separate consideration for intellectual-property rights is treated as royalty; withholding requirements are satisfied where tax has been deducted at the applicable treaty rate. Accordingly, the remittances do not result in default status or consequential interest liability for failure to withhold tax. en-us Wed, 22 Jul 2026 00:00:00 +0530 Tue, 28 Jul 2026 08:30:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795824 Outright payments for software acquired from a Malaysian associated enterprise, where accepted in transfer-pricing proceedings as an arm's-length acquisition of software product and related rights, are characterised as business income rather than royalty. Without a permanent establishment in India, the Malaysian enterprise's business income is not taxable in India under the treaty, so no withholding obligation arises. Separate consideration for intellectual-property rights is treated as royalty; withholding requirements are satisfied where tax has been deducted at the applicable treaty rate. Accordingly, the remittances do not result in default status or consequential interest liability for failure to withhold tax. Case-Laws Income Tax Wed, 22 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795824