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-FT

Please become a Premium member. If you are already a Premium member, login here to access the full content.