Consideration received by Singapore Company on sale of computer software cannot be treated as royalty

Court: Mumbai bench of the Income Tax Appellate Tribunal Citation: Kansai Nerolac Paints Ltd Vs. ADIT [2010-TII-155-ITAT-MUM-INTL] Brief: It was held by ITAT, Mumbai that computer software when put into a media and sold becomes goods like any other audio cassette or painting on canvass or book. Accordingly, the amount paid by taxpayer towards purchase of such computer software from a Singapore company cannot be treated as royalty as per the India-Singapore tax treaty (tax treaty). Further, the Tribunal held that since the payment for software cannot be treated as royalty, the taxpayer is not l...