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Purchase of software as a product being a transaction of sale, payment cannot be considered as royalty
Case Law Details
- Case Name
- Principal CIT Vs M. Tech India Pvt. Ltd. (Delhi High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2008-09
- Courts
- All High Courts, Delhi High Court
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Brief of the Case
Delhi High Court held In the case of Principal CIT vs. M. Tech India Pvt. Ltd that in cases where the payments are made for purchase of software as a product, the consideration paid cannot be considered to be for use or the right to use the software. It is well settled that where software is sold as a product it would amount to sale of goods. In the case of Tata Consultancy Services v. State of Andhra Pradesh: (2004) 271 ITR 401 (SC), the Supreme Court examined the transactions relating to the purchase and sale of software recorded on a CD in the context of the Andhra Prades...
Tortola, Road Town, Virgin Islands (British)
our product is anti-virus this product we are purchased from on-line license also coming by e-mail. when we made the payment yet not have deduction part so from 2015 onwards is applicable TDS like says but recent one article are dated 24/01/2016 at taxguru “PURCHASE OF SOFTWARE AS A PRODUCT BEING A TRANSACTION OF SALE, PAYMENT CANNOT BE CONSIDERED AS ROYALTY” refer this article not applicable TDS please suggestion…..
sir i want one clarification we are paying the payments to ourside company our company is under anti-virus marketing company. if required deduction TDS