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| The Tax Publishers2019 TaxPub(DT) 6228 (Pune-Trib) : (2020) 205 TTJ 0703 INCOME TAX ACT, 1961
Section 90
Assessee had only purchased software internally developed by non-resident and non-resident had not passed the copyright and only 'right to use' had been given to assessee and as such 'right to use' was akin to purchase of copyrighted article and in the absence of purchase of any copyright in the article, the assessee could not be held liable to deduct tax at source out of such payments.
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Double taxation relief - Agreement between India and Singapore - Royalty - Payment towards software licences and IT support services
Assessee claimed deduction of payments made to entity based at Singapore on account of software licence fees and IT support services. AO held the payment to be in the nature of royalty and accordingly disallowed deduction for want of TDS under section 195. Held: Assessee had only purchased software internally developed by non-resident and non-resident had not passed the copyright and only 'right to use' had been given to assessee and as such 'right to use' was akin to purchase of copyrighted article and in the absence of purchase of any copyright in the article, the assessee could not be held liable to deduct tax at source out of such payments.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10 to 2011-12
INCOME TAX ACT, 1961
Section 195
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