| Court: | Delhi High court |
| Head Notes: | CIT(International Taxation-2) Vs Gracemac Corporation Sub-Whether licensing of software is liable to be treated as royalty within the meaning of Section 9(1)(vi) of the Income-tax Act,1961 read with Article 12 of the Double Taxation Avoidance Agreement between India and USA. The Delhi High court in this case was considering the department’s appeal when the department counsel argued that the distribution model in this case involved making multiple copies of the Microsoft software and thus it was nothing but transfer of copyright and thus liable to be charged. The Court however relying on the decision of the Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited vs. Commissioner of Income Tax and Anr., (2021) SCCOnLine SC 159 dismissed the department’s appeal. The issue of royalty on sale of software services is now fairly settled issue after the judgement of Supreme Court as above. Ramesh Patodia |
| Law: | Income-Tax Act |
| Section(s): | Section 9(i)(vi) of Income-tax Act,1961 and Article 12 of DTAA between India and USA |
| Counsel(s): | Counsels |
| Dowload Pdf File | Click here to download the file in pdf format |
| Uploaded By | CA Ramesh Patodia |
| Date of upload: | March 9, 2022 |
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