Assessee-company provided cloud computing infrastructure and software services to its Indian clients through a subscription agreement. The Assessing Officer held that software underlying cloud computing service was licensed to the client and software was protected by patent/copyright thus, payment made by users as subscription fees for the right to use software and cloud infrastructure covering them would be royalty under section 9(1)(vi) and under article 12 of DTAA. Tribunal held that since granting of the right to install and use software included with the subscription did not include providing a copy of said software to the customer and even though cloud-based services were based on patents/copyright but subscribers did not get any right of reproduction, in such a case subscription fee was merely a consideration for online access of cloud computing services and would not be taxable as royalty.  (AY. 2112-13)