Income deemed to accrue or arise in India - FTS/FIS - receipts ...

Software Licensing Fees Classified as Business Income, Not Royalty; AMC Charges Exempt from FTS Taxation in India.

May 3, 2024

Case Laws Income Tax AT

Income deemed to accrue or arise in India - FTS/FIS - receipts pertaining to supply of software (including AMC services) - The tribunal confirmed that software licensing fees received by a U.S.-based company from an Indian entity do not constitute royalty but are instead business income, non-taxable in India due to the absence of a permanent establishment. Similarly, the AMC charges, closely tied to the software licensing, also do not meet the DTAA criteria for FTS as they do not make available any substantive technical knowledge or skills.

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Income deemed to accrue or arise in India - FTS/FIS - receipts ...

Software Licensing Fees Classified as Business Income, Not Royalty; AMC Charges Exempt from FTS Taxation in India.

May 3, 2024

Case Laws Income Tax AT

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