AI Drafter 
TaxTMI 
TaxTMI 
2021 (9) TMI 1083
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....r called 'the Act'), relating to Assessment Year 2014-15. 2. In this appeal, the question for consideration is whether the assessee who is a non-resident and tax resident of Singapore in terms of the India-Singapore Double Taxation Avoidance Agreement (DTAA) who acts as a distributor of computer software and providing ancillary services in the Asia Pacific region is taxable in respect of receipts on sale of computer software to Indian distributors/end users along with ancillary services. 3. The Assessee is a company incorporated in Singapore. The Company is a tax resident of Singapore in terms of the India-Singapore Double Taxation Avoidance Agreement ('the DTAA"). The assessee is engaged, inter alia, in the business of di....
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....documenting complete digital prototypes. The assessee has entered into a Software License and Distribution Agreement("Agreement") with Autodesk Inc., an US Company which has granted Autodesk the right to license and distribute computer software products and related services in India and other territories. The assessee makes a margin by selling the computer software and related services to the third party distributors. The Assessee pointed out that there is a license agreement between the Assessee and Autodesk Inc., USA. Under Article II - License Grant of the Agreement with Autodesk Inc., USA and the Assessee is reproduced below for reference (Autodesk in this agreement refers to Autodesk Inc., USA and Licensee refers to the assessee). ....
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.... the services and subcontract Third Parties to perform such activities. In the same agreement Article - I contains the definitions of various terms used in the agreement. The term 'End-user' is defined as under: "End-user shall mean the customers of the Licensee or Third Parties who are granted a sublicense that includes the limited right to use the software Products and Documentation for Internal business purposes only." The term "Services" in the Agreement is defined as under: "Services" shall mean the training, installation, configuration, consulting, hosting and technical support services provided to customers in the Territory and which contain, embody or utilize Autodesk's confidential In....
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....re was no right to use the software. Therefore, the receipts by the assessee cannot be taxed in India. Assessee also submitted that it has no physical presence in India and the sums were received outside India and therefore no income is taxable in India. 7. The AO and the DRP did not agree with the submissions of the assessee and the DRP in doing so followed the orders in assessee's own case for Assessment Year 2011-12 to 2013-14 on identical issues. Against the final Order of Assessment, the assessee is in appeal before the Tribunal. 8. At the time of hearing, learned Counsel for the assessee brought to our notice that the Tribunal decided identical issues in Assessment Years 2010-11 to 2013-14 in IT(TP)A No. 1758/Bang/2013, 294/....
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....n by the subsequent impugned judgments passed by the High Court of Karnataka to decide the same question in favour of the Revenue. The appeals before us may be grouped into four categories: i) The first category deals with cases in which computer software is purchased directly by an end-user, resident in India, from a foreign, non- resident supplier or manufacturer. ii) The second category of cases deals with resident Indian companies that act as distributors or resellers, by purchasing computer software from foreign, non-resident suppliers or manufacturers and then reselling the same to resident Indian end-users. iii) The third category concerns cases wherein the distributor happens to be a foreign, non-....
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.... and that the same does not give rise to any income taxable in India, as a result of which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS under section 195 of the Income Tax Act. The answer to this question will apply to all four categories of cases enumerated by us in paragraph 4 of this judgment. 170. The appeals from the impugned judgments of the High Court of Karnataka are allowed, and the aforesaid judgments are set aside. The ruling of the AAR in Citrix Systems (AJAR) (supra) is set aside. The appeals from the impugned judgments of the High Court of Delhi are dismissed." 13. We note that case of present assessee falls within the second and forth category analysed by Hon....