No Section 195 TDS on Payment for software licence to non-resident

Reliance Corporate IT Park Ltd. Vs DCIT (ITAT Mumbai)

Payment for software, by no stretch of logic, can be treated as a payment for “a process” liable to be taxed as royalty.

When database access by itself does not result in taxation as royalty, such database access being coupled with software licence cannot bring the software hence consideration within the scope of royalty.

As per the taxation of payment for licencing of software, we find that the issue is covered in favour of the assessee by a coordinate bench decision in the case of ADIT vs TII Team Tel

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