2005 (4) TMI 530

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....ra for the Appellant. Ms. Neeraj V. Bansal for the Respondent. ORDER 1. These appeals by assessee are directed against the orders of learned Commissioner of Income-tax (Appeals)-IV, Bangalore. 2. The appeals were filed before CIT(A) against order under section 201(1) for failure to deduct tax as required under section 195 of the Act. The assessee had imported software packages for the ....

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....r section 195. The Assessing Officer has discussed in detail in the assessment order as to why the payments are in the nature of 'royalty' and therefore, taxable as per article 12 of DTAA which does not contain any conditionality regarding existence of 'permanent establishment.' Further, according to Assessing Officer the payments are also covered by royalty definition under section 9(1)(vi) and t....

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....ments made for purchase of software from outside India as royalty. Software is treated as goods under the various sales tax enactments. In the case of Tata Consultancy Services wherein the Hon'ble Andhra Pradesh High Court held that "software that was standardized and marketed for use of certain classes of clients" would constitute goods. The decision has since been approved by Hon'ble Supreme Cou....

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....IT Appeal Nos. 264 to 266 (Bang.) of 2002, dated 18-2-2005] has recently held that where the software imported which is a shrink wrapped software or off the shelf software, same amounts to purchase of goods and not payment of royalties. The payment is for use of copy rights article and not for acquiring any copy right. This view has been arrived at after considering various decisions on the subjec....