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2009 (9) TMI 65 - HC - Income TaxTDS – Withholding Tax – Import of Software – Download of Software - The assessee imported ‘shrink-wrapped’ computer software from outside India for use in its business. No tax was withheld in respect of such payments on the ground the same cannot be treated as royalty either under the Income Tax Law or DTAA - ITO held such payments to be in the nature of royalty and subject to deduction of tax at source – held that - Charging provisions are independent of the provisions governing deduction of tax at source - The Tax Authority is not required to determine the income of a non-resident for the purpose of determining the taxes to be withheld - Any payment resulting in any income in the hands of a non- resident would be subject to withholding tax – Decision of Supreme Court in, Transmission Corporation of A.P. Ltd. v CIT (2008 -TMI - 5757 - SUPREME Court) and TCS v State of Andhra Pradesh (2008 -TMI - 4143 - Supreme Court), followed.
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