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15. At this juncture, it is pertinent to note that the Finance Act, 2012 has carried out an amendment to section 9(1)(vi) dealing with `income by way of royalty' through insertion of Expl. 4 w.r.e.f. 1.6.1976, which reads as under : -

Explanation 4.-- For the removal of doubts, it is hereby clarified that the transfer of all or any rights in respect of any right, property or information includes and has always included transfer of all or any right for use or right to use a computer software (including granting of a licence) irrespective of the medium through which such right is transferred.

and IT(TP) A.No.10/Bang/2014 iGate Global Solutions Ltd.

16. There are certain noticeable points of this amendment.

Firstly, it is for the removal of doubts and hence clarificatory in nature. Secondly, it has been inserted retrospectively from 1.6.1976 covering the year under consideration. Next, it clearly provides that the transfer of any rights in respect of `any right, property or information', being the same expression as used in the clause (b) of section 9(1)(vi) which attracts taxation of income from royalty payable by a resident, shall include transfer of all or any right for use or right to use a computer software, which also covers within its ambit the granting of a licence. What is further relevant to note next is that it is not only that the expression `rights in respect of any right, property or information' shall `include' use or right to use a computer software, but it will `always' be considered to have been so included, which gives further strength to the retrospective effect of the insertion of the Explanation 4. The net effect of the insertion of the Explanation 4 read with Explanation 2 to section 9(1)(vi) of the Act is that the legislature has made it clear beyond an iota of doubt that consideration for the use or right to use a computer software in any form, including a mere granting of and IT(TP) A.No.10/Bang/2014 iGate Global Solutions Ltd.