9911796707
TMI BlogRoyalty income payments made by the assessee for obtaining computer software were not liable to be taxed...Royalty income payments made by the assessee for obtaining computer software were not liable to be taxed in India as royalty u/s 9(1)(6). The amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of computer software through EULAs/distribution agreements, are not payments of royalty for the use of copyright in computer software. Therefore, such payments do not give rise to any income taxable in India, and the persons referred to in Section 195 of the Income-tax Act were not liable to deduct TDS u/s 195. The HC order in Commissioner of Income Tax-(LTU) vs. Reliance Industries Ltd. would govern the present proceedings, as there is a DTAA entered with the countries in question, with whose residents the transactions were entered into by the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
