If DTAA does not specifically treat consideration for use of ‘computer software’ as Royalty, such consideration cannot be taxed as Royalty under DTAA

Brief of the Case: Purchase of a license to use shelf/shrink-wrapped software is purchase of a “product” and not a “copyright”. Wherever the Government of India intended to include consideration for the use of software as ‘Royalties’, it explicitly provided so in the DTAA with the concerned country (e.g. India-Malaysia DTAA). In case relevant Article of a DTAA does not specifically treat any consideration for the use of or the right to use any ‘computer software’ as Royalty, the said consideration cannot be taxed as Royalty under such DTAA. Brief facts The assessees herein pu...