Consideration for Transfer of copyrighted software cannot be taxed as royalty

Ms. Sandvik Tooling Sverige AB Vs DCIT (ITAT Pune) The assessee is non-resident and was providing software services to Sandvik Asia Ltd. and also was providing IT support services to the said concern. The question which arises in the present appeal is whether the consideration received by assessee from the payer i.e. Sandvik Asia Pvt. Ltd. amounts to ‘royalty’ or ‘fees for included services’ or ‘fees for technical services under the realm of section 9(1 )(vi) of the Act or under the provisions of DTAA between India and Sweden. The Assessing Officer has relied on the order in the case...