Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 926 - ITAT DELHITDS u/s 195 - Income taxable in India - Royalty - payments made for purchases for copyrighted articles as per AO consideration for software constitutes ‘Royalty’ under the Act and such royalty is taxable in India and hence the company was required to deduct TDS on payments made to Innovative Education Services PTE Ltd, Singapore - HELD THAT:- It is a fact that the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence [2021 (3) TMI 138 - SUPREME COURT] has settled the dispute in favour of the assessee and against the Revenue The present appellant comes under Category III [concerns cases wherein the distributor happens to be a foreign, non-resident vendor, who, after purchasing software from a foreign, non- resident seller, resells the same to resident Indian distributors or end-users] The amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India, as a result of which the persons referred to in section 195 were not liable to deduct any TDS under section 195 of the Income-tax Act. Decided in favour of assessee.
|