Off shelf software Payment not royalty under India-Singapore DTAA

Brief of the Case ITAT Mumbai held in the case of M/s. Capgemini Business Services (India) Ltd. vs. ACIT that the definition of royalty given in the treaty is more beneficial to the assessee as compared to the provisions of section 9 of the Income Tax Act and the assessee has opted for the definition that is provided under the DTAA, thus as per section 90 of the Income Tax Act, definition of royalty as provided in the DTAA will prevail as over the general definition of ‘royalty’ provided under the Income Tax Act. The assessee cannot be said to have paid the consideration for use of or the ...