Tribunal held that the software purchased by the assessee being a copyrighted article payment therefor was not covered by the term \u201croyalty\u201d under section 9(1)(vi). Where the assessee did not acquire any copyright in the software, the payment was not covered under Explanation 2 to section\u00a09(1)(vi). The amended definition of \u201croyalty\u201d under the domestic law could not be extended to the definition of \u201croyalty\u201d under the Agreement, where the term \u201croyalty\u201d originally defined had not been amended. In terms of the definition of \u201croyalty\u201d under the Agreement, it was payment received in consideration for use or right to use any copyright of literary, artistic or scientific work, etc. Thus, purchase of copyrighted article did not fall in realm of royalty. Since the provisions of the Agreement would override the provisions of the Act and were more beneficial and the definition of \u201croyalty\u201d having not undergone any amendment in the Agreement, the assessee was not liable to deduct tax for payments made for purchase of software. The assessee could not be held to be in default. Payment made to\u00a0 Lease Line charges and reimbursement of expenses\u00a0 are not liable to deduct tax at source. Training availed of by employees of assessee Web based services available on internet is not technical knowledge imparted by service provider hence no transfer of technology hence not fees for technical Services, accordingly not liable to deduct tax at source. \u00a0(AY. 2007-08, 2008 -09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 201 : Deduction at source-Failure to deduct or pay\u2013Non-Resident\u2013Royalty\u2013Payment for purchase of copyrighted software \u2013Not royalty\u2013DTAA override the provisions of the Act-Lease Line Charges\u2014Reimbursement of Expenses-Training availed of by employees of assessee Web based services available on internet\u2014 No technical knowledge imparted by service provider\u2014No transfer of technology\u2014Not fees for technical Services-Not liable to deduct tax at source-DTAA-India-USA. [S. 9(1)(vi), 9(1)(vii), 195, 201(1), 201(IA), Art. 12(b)]<\/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":[1],"tags":[],"class_list":["post-6414","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1Fs","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/6414","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=6414"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/6414\/revisions"}],"predecessor-version":[{"id":6927,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/6414\/revisions\/6927"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=6414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=6414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=6414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}