Payments made by the respondent for obtaining computer software ...

Non-resident software payments not royalties, not taxable in India. No TDS obligation under Sec 195. Upholds Engineering Analysis.

Case Laws Income Tax

July 10, 2024

Payments made by the respondent for obtaining computer software were not liable to be taxed in India as royalties u/s 9(1)(vi) of the Income Tax Act, 1961. Following Engineering Analysis Centre of Excellence (P.) Ltd [2021 (3) TMI 138 - SUPREME COURT], amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for resale/use of computer software through EULAs/distribution agreements, is not payment of royalty for use of copyright in computer software. Therefore, persons referred to in Section 195 of the Income-tax Act were not liable to deduct TDS u/s 195. Decided against revenue.

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Payments made by the respondent for obtaining computer software ...

Non-resident software payments not royalties, not taxable in India. No TDS obligation under Sec 195. Upholds Engineering Analysis.

Case Laws Income Tax

July 10, 2024

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