Supply of software is not transfer of copyright but only transfer of copyrighted article and such payment is not Royalty under India-Israel tax treaty

Court: Mumbai bench of the Income Tax Appellate Tribunal

Citation: DDIT Vs. TII Team Telecom International Ltd. [2010-TII-62-ITAT-MUM-INTL]

Brief : Mumbai bench of the Income-tax Appellate Tribunal held that the supply of software does not amount to any transfer of copyright but only transfer of copyrighted article. Further, payment received for sale of copyrighted article does not amount to income from royalty within the meaning of the India-Israel tax treaty. Further, the Tribunal held that payment received from sale of software copy does not amount to income from royalty under the tax treaty.

Facts of the case

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