Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 558 - AT - Income TaxTDS u/s 195 - assessee had purchased the software from a company located in Israel - AO took a view that payment made for purchase of software was in the nature of royalty and that assessee was required to deduct TDS while making such payment - HELD THAT:- As relying on ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED [2021 (3) TMI 138 - SUPREME COURT] amounts paid by resident Indian end-users/distributors to non-resident computer software manufacture/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 deduce any TDS u/s 195. We are of the view that Ld. CIT(A) erred in treating the receipts from sale of software as royalty. Accordingly grounds raised by assessee stands allowed.
|