Can sale of software be liable to be taxed as royalty?

Last updated: 11 August 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) Bangalore has ruled that payments received by a company for the sale of software do not constitute royalty and are therefore not subject to tax. This decision follows a Supreme Court judgment which established that such transactions are not taxable as royalty under the Income Tax Act or the Double Taxation Avoidance Agreement (DTAA). The appeal was allowed in favour of the assessee.

Court :
ITAT Bangalore

Brief :
This appeal at the instance of the assessee is directed against final assessment order dated 21.10.2016, passed u/s 143(3) r.w.s. 144C(13) of the I.T.Act. The relevant assessmentyear is 2016-2017.

Citation :
IT(IT)A No.2531/Bang/2019: Asst.Year 2016-2017

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Comments


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