Software Payment Characterized as ‘Royalty’: A Dispute Set to Rest

Payments made to the non-resident software manufacturer / supplier and the tax aspects therein have been a subject matter of dispute for over two decades. This controversy is now set to rest by the recent Supreme Court (SC) ruling. The Hon’ble SC affirmed in its ruling that the payment made by the Indian resident to the non-resident software manufacturer / supplier, for resale or use of software, can’t be characterized as ‘royalty’. Rather, such payment is actually a ‘consideration’ for resale oPayments made to the non-resident software manufacturer / supplier and the tax aspects therein have been a subject matter of dispute for over two decades. This controversy is now set to rest by the recent Supreme Court (SC) ruling. The Hon’ble SC affirmed in its ruling that the payment made by the Indian resident to the non-resident software manufacturer / supplier, for resale or use of software, can’t be characterized as ‘royalty’. Rather, such payment is actually a ‘consideration’ for resale otaxmann.com Latest ArticlesRead More

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