Assessee non-resident and was providing software services and also IT support services to Swedish Company (SA) Since SA did not acquire any copyright in software and it was a mere transfer of copyrighted software, consideration received by assessee would not amount to ‘royalty’ or ‘fees for included services’ or ‘fees for technical services’ under realm of section 9 (1)(vi) or under article 12 of DTAA between India and Sweden. Accordingly not taxable in India. Not liable to deduct tax at source. (AY. 2010-11, 2011-12, 2013-14)
Sandvik Tooling Sverige AB v. DCIT (IT) (2019) 176 ITD 390 (Pune)(Trib.)
S. 9(1)(vi) : Income deemed to accrue or arise in India–Non-Resident-Royalty-Computer software-Transfer of copyrighted software-consideration would not amount to ‘royalty’ or fees for ‘included services’ or ‘technical services’-Not taxable in India– Not liable to deduct tax at source-DTAA-India–Sweden.[S.9(1)(i), Art. 12]