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television or tapes for use in connection with radio broadcasting, but not including consideration for the sale, distribution or exhibition of cinematographic films. The amendment brought in sec. 9(1)(vi) is an explanation for the purpose of removing doubts. It is clarified that consideration for the 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, constitutes Royalty.

53. On a comparative reading of the expression "Royalty", before and after the amendment made by the Finance Act, 2012, we are not able to find any paradigm shift in the meaning of term "Royalty", from the old one to new one. In both the expressions, "Royalty" means basically the consideration made for the transfer of all or any rights of something. In the new amended expression also it is the same that the transfer of all or any rights of something. The only clarification made by the amendment is that such all or any rights included transfer of all or any rights in respect of a computer software also. It means the clarification has included the software products also in the ambit of other items like literary, artistic or scientific work including films etc. It is easily seen that the clarification has been brought only to include computer software also in the ambit of transfer of all or any rights so as to determine the nature of payment. Therefore, there is no change in the concept of Royalty either before or after the amendment.