Payment received by taxpayer for sale of shrink wrapped software is not royalty under Article 12(3) of the India-USA tax treaty

Advertisement Court :Mumbai bench of the Income-tax Appellate Tribunal Citation : ADIT Vs. Solid Works Corporation [2010-TII-130-ITAT-MUM-INTL] Brief : Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of ADIT v. Solid Works Corporation [2010-TII-130-ITAT-MUM-INTL] Judgment date 1 April 2010, Assessment Year 2005-06) held that payment received by the taxpayer for sale of shrink wrapped software is not in the nature of royalty within the meaning of Article 12(3) of the India-USA tax treaty (tax treaty). Facts of the case · The taxpayer, a tax reside...