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Supreme Court Judgement on Tax liability with respect to Royalty for use of copyright in Computer software

Byadmin

Mar 3, 2021

ITEM NO.1501 – Court 3 (Video Conferencing) – SECTION IV-A
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeal No(s). 8733-8734/2018
ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED Appellant(s) VERSUS THE COMMISSIONER OF INCOME TAX & ANR. Respondent(s)
[ HEARD BY : HON’BLE ROHINTON FALI NARIMAN, HON’BLE HEMANT GUPTA AND HON’BLE B.R. GAVAI,JJ.]

Judgement

The amounts paid by resident Indian end-users/ distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software.

The same does not give rise to any income taxable in India, as a result of which the persons referred to in Section 195 of the Income Tax Act were not liable to deduct any TDS under Section 195 of the Income Tax Act…

To Read full judgement click the link given below:

https://www.dropbox.com/s/e0rs0zqdyz7mo19/SC_Judgement_02-Mar-2021.pdf?dl=0

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