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The Tax PublishersITA No. 1185/Del/2019
2020 TaxPub(DT) 4401 (Del-Trib)INCOME TAX ACT, 1961
Section 90, 9(1)(vi)
Consideration received by assessee based at Sweden for sale of software could not be treated as royalty in terms of section 9(1)(vi) as well as Article 12 of DTAA between India and Sweden because what had been transferred by assessee was neither copyright in the software nor use of copyright therein, but only the right to use copyrighted material.
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Double taxation relief - Agreement between India and Sweden - Royalty - Sale of shrink wrapped software to end users/customers in India
Assessee, a company based at Sweden sold shrink wrapped software to end users/customers in India. AO held that entire receipt from sale of software products was taxable as royalty under Article 12 of DTAA between India and Sweden and under section 9(1)(vi). Held: What had been transferred by assessee was neither copyright in the software nor use of copyright therein, but the right to use copyrighted material or article which was clearly distinct from rights in a copyright. Therefore, consideration received by assessee for sale of software could not be treated as royalty in terms of section 9(1)(vi) as well as Article 12 of DTAA between India between Sweden.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
IN THE ITAT, DELHI 'D' NEW DELHI BENCH
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