Case Law Details
Brief: Appellant(s) are the distributors of imported prepackaged shrink wrapped standardized software from Microsoft and other Suppliers outside India. During the relevant assessment year(s) appellant(s) made payments to the said software Suppliers which according to the appellant(s) represented the purchase price of the above mentioned software. The ITO (TDS) held that since the sale of software included a license to use the same, payments made by the appellant(s) to the foreign Suppliers constituted royalty, which was deemed to accrue or arise in India. Therefore, TAS was liable to be deducted under Section 195 of the I.T. Act. The said finding of the ITO(TDS) was upheld by the Commissioner (A). In second appeal, the ITAT, however, held that the amount paid by appellant(s) to the foreign software Suppliers was not “royalty” and the same did not give rise to any income taxable in India, and therefore, the appellant(s) was not liable to deduct TAS.
Citation : GE India Technology Center Private Ltd. Civil Appeal Nos. 7541- 7542 of 2010 dated 9 September March 2010
Court : Supreme Court
Facts
· The appellant(s) are the distributors of imported pre- packaged shrink wrapped standardized software from Microsoft and other Suppliers outside India. The appellant(s) effected payments to the said software Suppliers which according to them represented the purchase price of the software
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