Sale of copyrighted article cannot be treated as royalty under Article 12(3) of India-USA DTAA

Moogsoft Inc. Vs CIT (ITAT Delhi) ITAT Delhi held that amount received from sale of software (i.e. copyrighted article) cannot be treated as royalty under Article 12(3) of India-USA DTAA. Facts- The solitary issue arising for consideration is whether the amount received by the assessee towards sale of software is in the nature of royalty under Article 12 of the India – USA Double Taxation Avoidance Agreement (DTAA). Conclusion- It is observed, in the year under consideration, the assessee had sold certain software to two Indian entities for their internal use. As observed by learned Commissi...