Case Law Details
Court: Mumbai bench of the Income Tax Appellate Tribunal
Citation: Kansai Nerolac Paints Ltd Vs. ADIT [2010-TII-155-ITAT-MUM-INTL]
Brief: It was held by ITAT, Mumbai that computer software when put into a media and sold becomes goods like any other audio cassette or painting on canvass or book. Accordingly, the amount paid by taxpayer towards purchase of such computer software from a Singapore company cannot be treated as royalty as per the India-Singapore tax treaty (tax treaty).
Further, the Tribunal held that since the payment for software cannot be treated as royalty, the taxpayer is not liable to deduct tax at source from such payment as per Section 195 of the Income-tax Act, 1961 (the Act).
Facts of the case
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