Royalty versus copyrighted article: software subscriptions were not taxable, while customer-specific professional services were treated as FTS/FIS.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ITAT held that software subscription receipts were consideration for access to a copyrighted article, not royalty or fees for technical/included services, because customers received only a non-transferable right to use the software and no technology was transferred or made available. That treatment applied to AYs 2020-21 to 2022-23. By contrast, separate professional services receipts in AY 2022-23 were found to be specialised, customer-specific technical and professional consultations, so they were taxable as FTS/FIS under the Act and the DTAA. Proportionate equalization levy paid on those taxable services was directed to be refunded.....