No TDS on License Fee paid for mere use of Copyrighted Article: ITAT
The ITAT, Mumbai bench has held that the payment made for mere use of a copyrighted article would not constitute ‘royalty’ and the same is not subject to TDS under section 195 of the Income Tax Act and as per the Indo-US tax treaty.
“Assessee paid licence fee of USD 100,000 to M/s Fair Isaac International Corporation for acquiring a copy of the copyrighted article i.e “Blaze advisor” software.”
Source: taxscan
