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2011 (8) TMI 330 - AT - Income TaxAssessee is default u/s 201(1) - failure of deduction tax at source u/s 195 - payment made for the use of or right to use of the properties - royalty - Held that:- Find that both the definitions are similar and encompass the payment for 'the use of and the right to use of' any intellectual property mentioned therein such as copyright of a literary, artistic or scientific work or any patent, trade mark, design or model, plan etc. - Thus, the license granted by Oracle Data Base for use of its software by the assessee company constitutes royalty - the remittances are in the nature of 'Royalty' both under the Indian Income Tax Act as well as the DTAA between India and Switzerland - Therefore, the assessee is required to deduct tax at source before making the remittances - As the assessee has failed to do so, the assessee has to be treated as an assessee in default u/s 201(1) of the Act - Decided against the assessee.
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