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2010 (10) TMI 346 - AT - Income TaxDTAA - Royalty - the appellant under the Software Contract acquired only a copy of software program and did not acquire any copyright over such software as envisaged by section 14 of the Copyright Act - the software has been supplied to the assessee on computer disk from outside India on FOB basis - It is now established law that Computer software after being put on to a media and then sold, becomes goods like any other Audio Cassette or painting on canvas or a book and that the Assessing Officer is wrong in holding that Computer software on a media, continues to be an intellectual property right and that the Assessing Officer was wrong in treating this computer software as a “Patent” or as “Invention - As what is paid is not “royalty” under the Indo-US DTAA, and as it is covered under Article 7, which deals with “Business Profit” and as the foreign party does not have a Permanent Establishment in India, the same is not taxable in India and hence the assessee is not required to deduct tax at source from the said payment
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