Payment to parent company for copyrighted software on principle to principle basis cannot be treated royalty

Aveva Information Technology India (P) Ltd. Vs DCIT (ITAT Mumbai) Payment to parent company for copyrighted software on principle to principle basis cannot be treated royalty and TDS not applicable on payment to parent company not having PE in India. Hon’ble ITAT considered distribution agreement between the assessee and its parent company Aveva Information Technology India Pvt. Ltd., England and after considering relevant facts and on analysis of provisions of section 9(1)(vi) of the Act, and Article 5 and 13 of Indo-UK tax treaty held that payment made by the assessee to its parent com...