The assessee, Netherland  based company, engaged in the business of rendering services in the confectionery industry, entered into an agreement with the Indian customer (PVM India) for providing SAP functional services, SAP technical services, ICT Services and Microsoft Licencing Fees, etc. and had earned income. The Assessing Officer held that the payment fell under the term Royalty within the meaning of clause (iii)) of Explanation to section 9(1) and article 13 between India-Netherland treaty and taxed receipt at a rate of 10 per cent. DRP confirmed the addition. On appeal, the Tribunal held that consideration for resale/use of computer software through EULAs/distribution agreements is not payment of royalty for use of copyright in computer software, and does not give rise to any income taxable in India.  (AY. 2017-18)