Amount received for grant of user rights in a copyright software is royalty income

Elektrobit Automotive GmbH AM Vs Deputy DIT (ITAT Delhi)

It was held that license agreement as entered by the assessee itself points out the word royalty. Moreover, considering the facts of case, that license terms obliges the licensee to furnish to assessee monthly statement of supplied products to customers using his software and consequent raising of invoice on that basis, signifies the commercial exploitation of the licensed software and licensee fee for the same shall be treated as “royalty”. Therefore, the appeal was held

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