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| The Tax Publishers2020 TaxPub(DT) 1842 (Bang-Trib) INCOME TAX ACT, 1961
Section 195
Payments made to non-resident towards purchase of software were in the nature of 'royalty' and, therefore, AO was justified in disallowing deduction for want of TDS.
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Tax deduction at source - Under section 195 - Royalty - Payments made to non-resident towards purchase of 'off-the-shelf shrink-wrapped software
Assessee claimed deduction of payments made to non-resident towards purchase of 'off-the-shelf shrink-wrapped software. AO held the payment to be in the nature of royalty and accordingly, disallowed deduction for want of TDS under section 195. Held: Payments towards purchase of software were in the nature of 'royalty' and liable for TDS and, therefore, AO was justified in disallowing deduction.
REFERRED : CIT v. Samsung Electronics Co. Ltd. (2012) 345 ITR 494.
FAVOUR : Against the assessee.
A.Y. :
INCOME TAX ACT, 1961
Section 37(1)
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