9911796707
TMI Blog2021 (4) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... sment Year 2010-2011, on the file of the Income Tax Appellate Tribunal, Chennai, "D'' Bench, the Revenue has filed the above appeal. 2. The appellant has raised the following questions of law in TCA. No.758 of 2013:- "(i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in deleting the disallowance made u/s.40(a)(i) of the Act for non deduction of tax at source for the payment made by the assessee to Abaqus Inc., USA? (ii) Whether the finding of the Tribunal is proper since the payments made were royalty falling under section 9(1)(vi) of the I.T. Act and the assessee was obliged to deduct TDS as per provisions of Sec. 195 since payments were made to nonresident? (iii) Whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, nonresident 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-resident vendor, who, after purchasing software from a foreign, nonresident seller, resells the same to resident Indian distributors or end-users. iv) The fourth category includes cases wherein computer software is affixed onto hardware and is sold as an integrated unit/equipmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Article 12 of the DTAAs mentioned in paragraph 41 of this judgment, it is clear that there is no obligation on the persons mentioned in section 195 of the Income Tax Act to deduct tax at source, as the distribution agreements/EULAs in the facts of these cases do not create any interest or right in such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (section 9 (1)(vi), along with explanations 2 and 4 thereof), which deal with royalty, not being more beneficial to the assessees, have no application in the facts of these cases. 173. Our answer to the question posed before us, is that the amounts paid by resident Indian endusers/ distributors to non-re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
