Assessee-company incorporated in the United States of America (USA) was engaged in the business of developing, manufacturing and distributing of software products. It had entered into international distributor/reseller agreements with distributors in India for supplying software products and for providing ancillary support services against a certain amount. The Assessing Officer held that revenue received by the assessee was to be treated as royalty to be taxed at a rate of 15 per cent as per Article 12. Held that distributors were granted a non-exclusive and non-transferable license to resell software and furthermore, end users were granted a limited right to use software without any right to sub-license, transfer, modify or reproduce the software. Accordingly, the payments made by distributors and end users did not qualify as royalties under DTAA.  (AY. 2016-17) (AY. 2014-15)