Income deemed to accrue or arise in India - “If Royalty is payable by” - Section 9(1)(vi) - International Taxation - Income Tax

Income deemed to accrue or arise in India - If Royalty is payable by - Section 9(1)(vi) Income by way of royalty payable by- the Government; or a person who is a resident , Except of the following Where it is payable in respect of any right, property or information used or services utilised for the purposes of a business or profession carried on by such person outside India or For the purposes of making or earning any income from any source outside India; or a person who is a non-resident , for the purpose of Where it is payable in respect of any right, property or information used or services utilised for the purposes of a business or profession carried on by such person in India or For the purposes of making or earning any income from any source in India: Notes: Lumpsum royalty not deemed to accrue or arise in India: Lumpsum Royalty payment by resident for the transfer of all or any any right (including the granting of a license) to non-resident for supply of computer software along with computer hardware under the scheme approved by CG shall not be treated as deemed to be accrued or arise in India. Meaning of Computer Software: computer software means any computer programme recorded on any disc, tape, perforated media or other information storage device and includes any such programme or any customized electronic data; If transfer of property is already taxable under the Capital Gain, then it is not covered under the definition of Royalty . Consideration for use or right to use of computer software is covered under Royalty. 5. Meaning of Royalty - Royalty means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head Capital gains ) for- ( i ) the transfer of all or any rights (including the granting of a licence) in respect of a patent, invention, model, design, secret formula or process or trade mark or similar property ; ( ii ) the imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or trade mark or similar property ; ( iii ) the use of any patent, invention, model, design, secret formula or process or trade mark or similar property ; ( iv ) the imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill ; ( iva ) the use or right to use any industrial, commercial or scientific equipment but not including the amounts referred to in section 44BB ; ( v ) the transfer of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting; or ( vi ) the rendering of any services in connection with the activities referred to in sub-clauses ( i ) to ( iv ), ( iva ) and ( v ).