Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 166 - ITAT DELHIRoyalty receipts - use of copyright in the computer software - consideration received by the Assessee from various entities on account of sale/ supply of software - scope of Article 12(3) of the India-Singapore- DTA - as per AO transaction of sale of computer software to its customers implicit involved making of multiple copies of the software clearly indicates ‘transfer of copyright’ and therefore the consideration received qua said transactions amounts to “royalty” - HELD THAT:- Recently the Hon’ble Apex Court in Engineering Analysis Centre of Excellence Pvt. Ltd [2021 (3) TMI 138 - SUPREME COURT] clearly held that the amounts paid by resident Indian end-users/distributors to non-resident 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. Recently in the case of CIT (International Taxation) Vs. GRACEMAC CORPORATION [2022 (3) TMI 482 - DELHI HIGH COURT] wherein, the Assessee was also holding the licensing of software products of ‘Microsoft company’ in the Territory of India and selling to its customers in India,dealt with the identical issue as involved in the instant cases and while relying upon dictum laid down in Engineering Analysis Centre of Excellence Pvt. Ltd. case, accepted the proposition that licensing of software products of ‘Microsoft’ in the territory of India by the Respondent (Assessee) is not taxable in India as ‘Royalty’ under Section 9(1)(vi) of the Act read with Article 12 of the Indo US DTAA - Decided in favour of assessee.
|