Assessee-company incorporated in the United States of America (USA) was engaged in the business of developing, manufacturing and distributing of software products. It had entered into international distributor\/reseller agreements with distributors in India for supplying software products and for providing ancillary support services against a certain amount. The Assessing Officer held that revenue received by the assessee was to be treated as royalty to be taxed at a rate of 15 per cent as per Article 12. Held that distributors were granted a non-exclusive and non-transferable license to resell software and furthermore, end users were granted a limited right to use software without any right to sub-license, transfer, modify or reproduce the software. Accordingly, the payments made by distributors and end users did not qualify as royalties under DTAA.\u00a0 (AY. 2016-17) (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vi) : Income deemed to accrue or arise in India-Computer software-Royalty-Agreements with distributors in India for supplying software products and for providing ancillary support services-Not royalty-DTAA-India-USA. [Art. 12] <\/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-33762","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8My","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33762","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=33762"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33762\/revisions"}],"predecessor-version":[{"id":33763,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33762\/revisions\/33763"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=33762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=33762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=33762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}