Assessee was engaged in offshore supply of standardized\/shrink wrapped software and filed a \u2018NIL\u2019 return for the AY. The AO assessed the revenues from offshore supply of standardized\/shrink wrapped software as income in the nature of royalty and taxing the same under the provisions of Section 9(1)(vi) of the Act. The Hon\u2019ble DRP upheld the action of the AO. On appeal before the Hon\u2019ble ITAT, the Hon\u2019ble\u00a0ITAT relied on the decision of Hon’ble Supreme Court in the case Engineering Analysis Centre of Excellence Pvt. Ltd. (Civil Appeal Nos. 8733-8734 of 2018) which held that amounts paid by resident Indian end-users\/distributors to non-resident computer software manufacturers\/suppliers, as consideration for the resale\/use of the computer software through EULAs\/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India. Accordingly, Hon\u2019ble ITAT deleted the entire addition made by the AO. (AY. 2013-14,\u00a0 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty Amounts paid as consideration for resale\/use of computer software through EULAs\/distribution agreements-Not payment of royalty for use of copyright-Does not give rise to any income taxable in India-Not liable to deduct any TDS under section 195 of the Act. [S. 195] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29545","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7Gx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=29545"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29545\/revisions"}],"predecessor-version":[{"id":29546,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29545\/revisions\/29546"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=29545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=29545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=29545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}