Topic

software licensing

3 articlesLatest June 2026
Sale of Standard Software Licenses Not FTS Under India-Ireland DTAA | No Make-Available Clause Required : ITAT Delhi
Case Law Analysis
|Income Tax Appellate Tribunal

Sale of Standard Software Licenses Not FTS Under India-Ireland DTAA | No Make-Available Clause Required : ITAT Delhi

The ITAT Delhi has ruled that revenue from the sale of standard cybersecurity software licenses and incidental support services does not qualify as Fees for Technical Services under Article 12(3)(b) of the India-Ireland DTAA, even without a 'make-available' clause. This clarifies a critical tax treatment for global SaaS providers and reinforces the distinction between licensing and technical service delivery under tax treaties.

Service Tax Not Leviable on Software Sales with VAT Payment or Overseas Exhibitions : CESTAT Chandigarh Clarifies Extended Limitation Requires Proof of Suppression
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Service Tax Not Leviable on Software Sales with VAT Payment or Overseas Exhibitions : CESTAT Chandigarh Clarifies Extended Limitation Requires Proof of Suppression

CESTAT Chandigarh rules that service tax cannot be imposed on software sales where VAT is already paid or on overseas exhibitions, as these do not qualify as taxable services. The tribunal also held that extended limitation under Section 73(1) of the Finance Act, 1994, requires concrete proof of suppression, not merely non-payment, impacting tax assessments for IT firms and exporters.

DTAA Royalty Exclusion | Software Licensing Without Copyright Transfer Not Taxable as Royalty or FTS : ITAT Bangalore Affirms Engineering Analysis Precedent
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.

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