https://www.taxtmi.com/caselaws?id=472754 Consideration from standard software sales and pure cross-charges for third-party software does not constitute royalty under section 9(1)(vi) of the Income-tax Act or Article 12(3) of the India-USA tax treaty where no taxable income element arises. Third-party hardware supplied to an Indian subsidiary on a cost-to-cost basis without mark-up is a reimbursement, not consideration giving rise to capital gains under the Act or Article 13 of the treaty. Software receipts and hardware reimbursements of this nature are therefore excluded from taxable income in India. en-us Tue, 27 May 2025 00:00:00 +0530 Sat, 24 Oct 2026 10:09:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472754 Consideration from standard software sales and pure cross-charges for third-party software does not constitute royalty under section 9(1)(vi) of the Income-tax Act or Article 12(3) of the India-USA tax treaty where no taxable income element arises. Third-party hardware supplied to an Indian subsidiary on a cost-to-cost basis without mark-up is a reimbursement, not consideration giving rise to capital gains under the Act or Article 13 of the treaty. Software receipts and hardware reimbursements of this nature are therefore excluded from taxable income in India. Case-Laws Income Tax Tue, 27 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472754