https://www.taxtmi.com/caselaws?id=57788 Payments for import and distribution of shrink-wrapped software were treated as consideration for a copyrighted article, not for transfer or use of copyright. The Tribunal applied the distinction between ownership of the software medium and ownership of copyright, noting that the foreign vendors retained the copyright and the Indian purchaser only obtained distribution rights in India. On that basis, the payment did not fall within the statutory definition of royalty and was not chargeable as royalty income. As the non-resident vendors had no permanent establishment in India, section 195 withholding was held inapplicable. en-us Tue, 31 Jan 2006 00:00:00 +0530 Wed, 27 Mar 2024 09:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57788 Payments for import and distribution of shrink-wrapped software were treated as consideration for a copyrighted article, not for transfer or use of copyright. The Tribunal applied the distinction between ownership of the software medium and ownership of copyright, noting that the foreign vendors retained the copyright and the Indian purchaser only obtained distribution rights in India. On that basis, the payment did not fall within the statutory definition of royalty and was not chargeable as royalty income. As the non-resident vendors had no permanent establishment in India, section 195 withholding was held inapplicable. Case-Laws Income Tax Tue, 31 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57788