The ITAT addressed the taxability of software license receipts ...

ITAT Rules Software License Payments Not Taxable as Royalty Under India-US Tax Treaty for Non-Exclusive Licenses.

June 29, 2024

Case Laws Income Tax AT

The ITAT addressed the taxability of software license receipts as royalty under the India-US Tax Treaty. The case involved a foreign company selling software licenses to a distributor in India, who then sells to end-users. The ITAT held that since the end-users were granted a non-exclusive, non-transferrable, and non-sub licensable license, the payment received from the distributor cannot be considered as "royalty" under the treaty. Additionally, the ITAT considered the taxability of amounts received for maintenance services, concluding that when maintenance is linked to the software license and the software itself is not taxable as royalty, the provisions of the treaty do not apply. The ITAT upheld the decision of the CIT (A) based on previous ITAT orders, dismissing the appeal filed by the Revenue.

View Source

← Previous Next →

The ITAT addressed the taxability of software license receipts ...

ITAT Rules Software License Payments Not Taxable as Royalty Under India-US Tax Treaty for Non-Exclusive Licenses.

June 29, 2024

Case Laws Income Tax AT

You may also like:

The case revolves around the taxation of income earned by the assessee from licensing software to Indian customers under the India-USA Double Taxation Avoidance...

TDS u/s 195 - payments by resident Indian end-user to non-resident computer software manufacturers/suppliers - payment for software licenses not royalty under Article 12...

The assessee, a non-resident company incorporated in Singapore without a permanent establishment in India, received income from licensing of software to M/s. L&T Ltd....

The ITAT addressed TDS u/s 195 withholding tax demand by the AO on foreign remittances for clinical trials, consultancy, and market surveys. The "make available" clause...

Royalty receipts - income deemed to accrue or arise in India - assessee had sold software licenses to its associated enterprises and to other Indian customers - The ITAT...

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...

In the present case, the Income Tax Appellate Tribunal (ITAT) held that when the sale of software (prime) license fees is not taxable, the fees for provisions for other...

Assessee employed by Indian entity but sent on long-term international assignment to Singapore. Salary received in India for administrative reasons, but employment...

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...

The ITAT ruled that receipts from Business Support Services (BSS) should be deleted from the assessee's taxable income, following binding precedent established in the...

The High Court examined whether payments made by an Indian company to its associated entity in the US for supply of computer software constituted "royalty" under the...

TDS u/s 195 - payment received for interconnect usage charges - transaction with non-treaty country - The assessee contested the taxability of these payments as...

Income deemed to accrue or arise in India - licensing of software products of Microsoft in the Territory of India by the Respondent was not taxable in India as Royalty...

The case involved determining tax liability on royalty receipts for software license expenses. The Assessing Officer (AO) considered the receipts taxable as royalty u/s...

Income deemed to accrue or arise in India - Supply of software - ‘royalty’ - Shrink wrap software or customized software - Drawing parallels with that decision and the...

Quick Updates: