Taxation of software reimbursements as Royalty - assessee ...

Software Reimbursements Not Taxable as Income Under DTAA; Local Tax Act Definition of 'Royalty' Inapplicable.

February 22, 2022

Case Laws Income Tax AT

Taxation of software reimbursements as Royalty - assessee strongly contends that reimbursements sought by the assessee represent recovery of expenses incurred by it, on behalf of Autoliv India, on an ‘at-cost’ basis - Since the term ‘Royalty’ has been defined in the DTAA, definition of the term ‘Royalty’ under the Act cannot be applied. Considering the facts of the case in totality, we hold that reimbursement towards software charges received by the assessee from Autoliv is not taxable since the same does not represent any income in the hands of the assessee - AT

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Taxation of software reimbursements as Royalty - assessee ...

Software Reimbursements Not Taxable as Income Under DTAA; Local Tax Act Definition of 'Royalty' Inapplicable.

February 22, 2022

Case Laws Income Tax AT

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