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Indian decision on software licensing

|Treaty Development|India-US
India-US

It has been reported that a Commissioner of Income Tax (CIT(A)) in New Delhi has ruled that the price charged by Microsoft for the use of its software in India is license fee. The CIT(A) held that the products of Microsoft are licensed and not sold. As income from software license is royalty income under both Indian domestic tax law and the India-US tax treaty, tax should be payable on it.

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