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No TDS required on import of shrink-wrapped software: Supreme Court

Mar 03, 2021 - ICT Monitor Worldwide

The Supreme Court (SC) on Tuesday ruled that payments made by resident Indian end-users or distributors (such as technology companies) to overseas suppliers on import of shrink-wrapped software generally known as off-the-shelf software, is not a Royalty payment. Thus, no withholding tax obligations arise in India, against such payment.

During assessment and at various levels of judicial appeals, payments made for import of shrink-wrapped software to overseas suppliers was held assessable ...