Consideration for use of computer software through EULAs/ distribution agreement is not royalty

CIT- International Taxation -3 Vs Xiocom (NZ) Ltd (Delhi High Court) Delhi High Court held that consideration for the resale/use of computer software through EULAs/distribution agreement is not Royalty for the use of copyright of the computer software and hence doesn’t give rise to any taxable income in India. Hence, TDS u/s. 195 not deductible. Facts- The assessee respondent company is involved in designing and providing fully tailored, off the shelf wireless broadband solutions throughout the USA and a few other countries in Africa. During the year under consideration, the assessee company...