In Absence of PE, Software Licence Income Not Royalty Under India-USA DTAA: ITAT Delhi

Enea Software Inc. Vs DCIT (ITAT Delhi) 1. Software License Fee Not Royalty in India: Reason Is Copyrighted Article, Not Copyright Transfer Description: The ITAT Delhi ruled that the fee received by a US company for licensing software was not taxable as royalty under the India-US DTAA. Following the Supreme Court precedent, the Tribunal held the transaction involved only the use of a copyrighted article, not the transfer of copyright rights. 2. US Company Income Not Taxable: Reason Is Absence of PE and Non-FTS Support Services Description: The Tribunal deleted an addition of Rs.4.96 crore, co...