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Further, the Company submits services consist of that during the year under using reasonable Page | 9 A Ys. 2019-20 & 2021-22 Murex Southeast Asia Private Ltd.

Versus DCIT, Mumbai consideration there is no on-site efforts to Resolve an maintenance and support Error or Critical services assistance provided Error in the by MSEA to Indian customers Software Program during the year under identified by consideration. The Company SUBLICENSEE also submits that it is a non- during the resident with no presence / applicable Permanent Establishment in Maintenance Term, terms of India-Singapore DTAA i.e., to identify and in India and there is no reproduce the Error maintenance team of the or Critical Error Company in India. and, to the extent practicable using reasonable efforts, to diagnose the Error or Critical Error, and upon such identification and diagnosis, to the extent practicable using reasonable efforts in the good faith judgment of MSEA, to provide a correction of the Error or Critical Error or, if no correction is available, a reduction of the effects of, or a work-

Murex Southeast Asia Private Ltd.

Versus DCIT, Mumbai MSEA software program, the training of personnel in such In-House SUBLICENSEE'S support team / IT team need to Internal and be competent to know how to External Users. use the software program to be able to effectively explain the 1.3.2 Maintenance query / bug to MSEA which Services. ... The In would then enable MSEA to -House support identify the issue and resolve Group will be the same. responsible for all communications with MSEA in respect of any questions encountered in any Site concerning SUBLICENSEE'S use of the Software Program Description of training provided 1.1.3 Training as part of the Maintenance Upon the request of services: SUBLICENSEE, and The Company submits that it at times and provides training to the end locations to be users and In-house team mutually agreed members of the Indian between the customers only with respect to parties, MSEA will the proper usage of the train program. Considering it is a SUBLICENSEE specific software for financial and Sub licensee sector customers, it is Affiliates on the necessary for the Appellant to proper usage of provide training to the Indian the Software customers else the software Program.

Versus DCIT, Mumbai provided only on need basis e.g. if there is an additional module which is sub-licensed or there is a change in the Indian customers users / In-

House support team etc.
Updates to the software sub-        1.2 Updates
licensed:                           1.2.1       Updates:
As a pan of the maintenance         From time to time,
services, the Appellant also        MSEA will provide
provides     updates     to   the   SUBLICENSEE with
software       program.      Such   an update to the
updates include e.g., correction    Software Program
of     errors,      improvements    including,         for
concerning existing functioning     example, correction
of program, and changes             of            errors,
intended         to      improve    improvements
calculations     /    results   /   concerning        the
formulate of software program       existing functioning
etc. There is no addition in the    of the program or
functionalities through such        the screens, and
update.                             program     changes
The updates are standard,           intended to improve
provided to all the customers,      the     calculations,
not    customized      and    the   results          and
installation of such updates is     formulae of the
at the discretion of the Indian     Software Program.
customers.                          Additional
                                    functionalities
                                    shall             not
                                    generally          be
                                    delivered           in
                                    connection with
                                    an update.

                                    "Updates":
                                    Updates to the
                                    Software Program
                                    that          MSEA
                                    distributes to its
                                    general customer
                                    base     having    a
                                    similar scope of use
                                    of the Software
                                    Program           as
                                    SUBLICENSEE as
                                    part      of     the
                                                                    Page | 14


                                                    A Ys. 2019-20 & 2021-22

Murex Southeast Asia Private Ltd.

                                                                       Versus
                                                               DCIT, Mumbai



                                      maintenance
                                      services which they
                                      are     entitled   to
                                      receive,         and
                                      provided           to
                                      SUBLICENSEE as
                                      part       of     the
                                      Maintenance
                                      Services,          or
                                      otherwise at no
                                      additional
                                      sublicense fee or
                                      maintenance       fee
                                      (and        "Updated
                                      Version" means the
                                      version      of   the
                                      Software Program
                                      resulting from the
                                      installation of an
                                      Update).
The     maintenance        services   5.3       Automatic
contract is dependent on the          Termination:       In
software              sublicensing    the event of the
agreement. In case of separate        expiration         or
agreements for sublicensing           termination        of
and maintenance, there is a           the      Sublicense
termination      clause      which    Agreement.       this
provides that maintenance             Maintenance
services will automatically           Agreement shall
terminate        if       software    automatically
sublicensing contract is expired      terminate
or terminated
The Company submits that              Article         III
the     fees    for maintenance       Maintenance Fees
services are annual and based         3.1 Annual Basic
on a percentage of licence fee.       Maintenance Fee:
The said fees are not based on

raised / resolved by the              SUBLICENSEE
Appellant.     The      said    fee   shall pay MSEA in
increases     year      on    year    advance on an
according     to    the     agreed    annual basis, an
inflation index which implies         annual      basic
that there is no diminishing          maintenance fee
services     and     the    Indian    for the Software
customers      year     on    year    Program (for one
                                      hundred     (100)
                                                                       Page | 15


                                                       A Ys. 2019-20 & 2021-22