Log In

| Recover password

pexels-pixabay-48148
pexels-august-de-richelieu-4427430
pexels-energepiccom-288477
The Delhi High Court in their latest in
[2021] 431 ITR 136 (Del)
held that the consideration received by the non-resident assessee developer from various entities on account of sale of software was not royalty within the meaning of article 13 of the Indo-UK DTAA and that there was no corresponding amendment to the definition of the term “royalty” in article 13(3) of the Double Taxation Avoidance Agreement as carried out in the definition of royalty under section 9(1)(vi) video Explanation 4.
 
Software is accessed in an online mode or platform through the internet or in any other digital mode so that after 1.4.2020 any consideration paid for its acquisition unless subjected to withholding tax u/s 195 would be liable to the equalisation levy @ 2% in view of an amendment to section 163 of the Finance Act 2016 as has been proposed in the recent budget 2021-22.
 
The delhi high court and similar such decisions in the past somewhat do not lend total exemption anymore from now on.

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Do not copy the content of this website.