Payments For Software License Is Royalty!

In an important ruling, the Mumbai bench of the Income Tax Appellate Tribunal ("ITAT"), in the case of Reliance Infocom Ltd ("the taxpayer") has ruled that payments towards software licenses are in the nature of royalty and taxes should be withheld in India

September 12, 2013 / 18:22 IST

In an important ruling, the Mumbai bench of the Income Tax Appellate Tribunal ("ITAT"), in the case of Reliance Infocom Ltd ("the taxpayer") has ruled that payments towards software licenses are in the nature of royalty and taxes should be withheld in India under the provisions of Section 195 of the Income tax Act, 1961 ("the Act"). This BMR Advisors alert analyses the Mumbai ITAT order.

first published: Sep 12, 2013 06:22 pm

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