aforesaid observations,
we shall now further deliberate on the definition of „royalty‟ as contemplated in
the India-Singapore tax treaty. In our considered view there ... humble understanding, open to pick up a part of the definition of royalty
under the domestic law and supply the same to an undefined expression
software would constitute royalty. The AO thereafter referred to definition, of
royalty in Article-12(3) of the DTAA and held that that payment ... royalty. Explanation-2 to section 9(1)(vi) provides the definition of
royalty which reads as under:
9. Income deemed to accrue or arise
concluded by holding as under:-
3.9. "Royalty definition in Indian Income Tax Act, 1961 was amended in
section to include such transactions also ... rights which the
copyright owner has, is necessary to invoke the royalty definition. Viewed
from this angle, a non -exclusive and non-transferable licence enabling
within the ambit of the said
definition. Finance Act, 2012 inserted an amendment in the definition of
royalty whereby the definition of royalty was expanded ... definition of 'royalties' under the India-USA Tax Treaty.
Therefore, the retrospective amendment in the royalty definition under the
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definition in the DTAA is narrower than the definition in the Act.
Article 13(3) brings within the ambit of the definition of royalty ... definition of 'Royalty' under DTAA, where the term
'Royalty' originally defined has not been amended. As per definition of
'Royalty
being provided by
many other telecom operators and hence the royalty definition
relating to secret process is not attracted while providing telecom
bandwidth facility.
Reliance ... taxable as equipment
royalty or process royalty under the Tax Treaty. The transaction does not result in
equipment royalty under the Tax Treaty as there
purchase of standardized version of
software shall not fall under the definition of Royalty as provided in DTAA. We
notice that the co-ordinate bench ... each other. The definition provided under the DTAA is the very short and
restrictive definition, whereas, the definition of the royalty as provided
under
only issue that arises for
consideration in this appeal.
6. The definition of royalty as given in Article-12(3) of the DTAA ... definition provided under the DTAA is not as exhaustive as the definition as
contained in the Act. The definition of "Royalty
each other.
The definition provided under the DTAA is the very short and restrictive
definition, whereas, the definition of the royalty as provided under ... restrictive whereas the definition under the Income Tax Act
is wide, inclusive and extended. Since the definition provided under the
royalty in the DTAA
examined the nature of payment in the light of
the definition of "Royalty" under the Act and as per the India
UK DTAA ... being
provided by many other telecom operators and hence the
royalty definition relating to secret process is not attracted
while providing telecom bandwidth facility
