| COURT: | ITAT Delhi |
| CORAM: | George George K (JM), Sudhakar Reddy (AM) |
| SECTION(S): | 9(1)(vi), Article 12 |
| GENRE: | International Tax |
| CATCH WORDS: | royalty, software licensing |
| COUNSEL: | Rashmi Chopra |
| DATE: | May 18, 2015 (Date of pronouncement) |
| DATE: | May 27, 2015 (Date of publication) |
| AY: | 2004-05, 2010-11 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Consideration for supply of software (whether with or without equipment) is not taxable as "royalty" if there is no transfer of right in the copyright to the software | |
There was no transfer of any right in respect of copyright by the assessee and it was a case of mere transfer of a copyrighted article. The payment is for a copyrighted article and represents the purchase price of an article. Hence, the payment for the same is not in the nature of royalty under Article 12 of the Tax Treaty. The receipts would constitute business receipts in the hands of the Assessee and is to be assessed as business income subject to assessee having business connection/ PE in India
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