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2021 (4) TMI 61 - AT - Income TaxTDS u/s 195 - Disallowance u/s 40(A)(ia) - payment made by the appellant to M/s. Ansys Inc. U.S.A. towards the purchase of goods as Royalty for having not done TDS on such payments made - HELD THAT:- Admittedly the issue involved in these appeals has been set at rest by the decision of Hon’ble Supreme Court in a recent case of Engineering Analysis Centre of Excellence Pvt.Ltd.[2021 (3) TMI 138 - SUPREME COURT] while considering the issue of royalty on sale of software, have also considered the decision of Hon’ble Karnataka High Court in case of CIT vs Samsung Electronics Co.Ltd [2011 (10) TMI 195 - KARNATAKA HIGH COURT] as held that the amounts paid by resident Indian end-users/distributors to nonresident 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 of the Income Tax Act were not liable to deduct any TDS under section 195 - Decided in favour of assessee.
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