Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 35 - AT - Income TaxAssessee in default u/s.201(1) - TDS u/s 195 - TDS on AMC charges to Non Residents - Payments made for software annual maintenance charges and payments made for what is claimed as software license fees - application of "making available” clause in the Article defining Royalty and fees for included services, in the respective DTAA’s - Held that:- Considering the facts and circumstances of the case, we are of the opinion that the question whether assessee was liable to deduct tax on AMC charges to Non Residents requires a fresh look by the ld. Assessing Officer. We set aside the orders of the lower authorities on this issue remit it back to the file of the ld. Assessing Officer AO for consideration afresh in accordance with law. For payments made to license for software, without deducting tax at source - Commissioner of Income Tax (Appeals) had considered the payments made by the assessee to be Royalty for the license granted by the payees to the assessee for using the software. No examination has been done on the real nature software, whether it was firmware or embedded software or standalone software. The question whether the payments were Royalty or not hinges upon the nature of software supplied. Unless a close analysis is done on the purchases orders and invoices relating to the supplies made by M/s. JQ Network on the assessee, it is not logically possible to come to a conclusion on the nature of payments effected by the assessee. In the circumstances, the question whether the payments effected by the assessee to JQ Network would constitute Royalty in our opinion also requires a fresh look by the ld. Assessing Officer. We therefore set aside the orders of the lower authorities on this issue also and revert it back to the file of the AO for consideration afresh in accordance with law - Appeal of the assessee allowed for statistical purposes.
|