The assessee, a cellular mobile telephony service provider, made remittances to a UK entity for software licences without TDS under section 195(1), which AO treated as royalty under section 9(1)(vi) and DTAA, raising a demand under sections 201(1) and 201(1A), though CIT(A) allowed the assessee’s appeal holding that payments for copyrighted products without rights to exploit the copyright did not qualify as royalty under the Agreement. On appeal, the Tribunal held that the end-user licence agreements did not grant the end-user any right amounting to use of, or right to use, any copyright, and hence the payments did not constitute royalty and were not chargeable to tax in India; since the domestic law definition of royalty under section 9(1)(vi) was not more beneficial to the assessee than DTAA, it was not applicable in view of section 90(2), and consequently there was no obligation to TDS under section 195. (AY.2013-14)