Deduction of tax at source from payments in respect of systems software--Announcement by Finance Minister in Lok Sabha on 7-9-1990--Regarding

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..... statement made in the Lok Sabha on September 7, 1990, the Finance Minister had, inter alia, announced:-- "At present customs duty is levied on the value of computer software by treating it as a commodity import. The non-resident licenser or seller is also subjected to income-tax on royalty payment for licensing of the software. To avoid this dual levy for exporters, Government has decided that l .....

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..... in relation to, or for use of, such systems software will not be liable to tax in India as payment by way of royalty or otherwise. Such lump sum payments will, henceforth, be allowed to be made without deduction of tax at source under section 195(1) of the Income-tax Act, 1961. Necessary amendment of the law in this regard will be introduced before Parliament shortly. (Sd.) Arbind Modi, Secre .....

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