Royalty income payments made by the assessee for obtaining ...

Software Payments Not Taxed as Royalty in India; No TDS Deduction Required for Non-Resident Software Providers.

July 25, 2024

Case Laws Income Tax HC

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.

View Source

← Previous Next →

Royalty income payments made by the assessee for obtaining ...

Software Payments Not Taxed as Royalty in India; No TDS Deduction Required for Non-Resident Software Providers.

July 25, 2024

Case Laws Income Tax HC

You may also like:

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...

TDS u/s 195 - payments made to non-resident - The amounts paid by resident Indian endusers/ distributors to non-resident computer software manufacturers/suppliers, as...

TDS disallowance u/s 40(a)(i) for non-deduction on overseas payments towards patent fees, reimbursement of official fees and professional fees, treating such payments as...

TDS u/s 195 - Withholding Tax - Purchases for copyrighted articles - Royalty - The amounts paid by resident Indian end-users/distributors to non-resident computer...

TDS u/s 195 - Royalty - the amounts paid by resident Indian endusers/ distributors to non-resident computer software manufacturers/suppliers, as consideration for the...

TDS u/s 195 - amounts paid by the assessee to the non-resident computer software manufacturers / suppliers as consideration for the resale / use of computer software, is...

The assessee, a resident Indian company engaged in manufacturing boiler pressure parts and engineering plants, paid ocean freight charges to a non-resident Korean...

TDS u/s 195 - import of software or supply of software - payment made by the assessee to non-resident companies would amount to royalty, liable to TDS - AT

Disallowance of expenses u/s.40(a)(ia) - Non deduction of TDS u/s 195 - at the time of payment made by the assessee to non-residents, there was an ambiguity in the...

Receipt of Fees for Technical Services (FTS) - there is no dispute that the payment made was in the nature of FTS and there is no article in DTAA for taxing the FTS...

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...

Addition u/s 40(a)(ia) - non deduction of tds - payments to non-resident for purchase of software prior to 15.10.2011 cannot be disallowed u/s.40(a)(ia) of the Act for...

Non deduction of TDS on payment to non-resident - disallowance u/s 40(a)(i) - a similar payment to a resident does not result in disallowance in the event of non...

TDS / Withholding tax u/s 195 - amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for...

Disallowance of Professional fees paid to non-residents - Non deduction of TDS u/s 195 - the assessee cannot be expected to deduct TDS on payment made to non-residents...

Quick Updates: