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| The Tax Publishers2023 TaxPub(DT) 1587 (Del-Trib) : (2023) 103 ITR (Trib) 0616 INCOME TAX ACT, 1961
Secrtion 90 Article 12(3)
Amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for resale/use of computer software through EULAs/distribution agreements, was for the use of copyrighted article, i.e., computer software, and not copyright therein, therefore, income from sale of software could not be considered as 'royalty' under article 12(3) of the India-Ireland DTAA.
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Double taxation relief - Agreement between India and Ireland - Royalty under article 12(3) - Income from sale of software
Assessee, based at Ireland, earned income from sale of software to Indian entities. AO taxed the same as 'royalty' under article 12(3) of the India-Ireland (DTAA).Held: Amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for resale/use of computer software through EULAs/distribution agreements, was for the use of copyrighted article, i.e., computer software, and not copyright therein, therefore, income from sale of software could not be considered as 'royalty' under article 12(3) of the India-Ireland DTAA.
Followed:Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT & Anr. (2022) 3 SCC 321 (SC) : 2021 TaxPub(DT) 1208 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 90 Article 12
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