Case Law Analysis
|Income Tax Appellate Tribunal
DTAA Royalty Exclusion | Software Licensing Without Copyright Transfer Not Taxable as Royalty or FTS : ITAT Bangalore Affirms Engineering Analysis Precedent
ITAT Bangalore holds that software licensing fees without transfer of copyright or source code do not constitute 'royalty' or 'fees for technical services' under the Indo-Swiss DTAA, aligning with the Supreme Court's Engineering Analysis ruling. This decision reinforces the distinction between business profits and taxable royalty, impacting multinational software vendors and tax authorities.