The Indian High Court (HC) issued its decision on 22 November 2013 in the case of Infrasoft Limited v. Director of Income Tax (ITA 1034/2009) that in order to qualify as a royalty payment under article 12(3) of the India - United States Income Tax Treaty (1989) (the Treaty), it was necessary to establish that there is a transfer of all or any rights (including the granting of any licence) in respect of a copyright of a literary, artistic or scientific work.
(a) Facts. The Taxpayer (i.e. Infrasof…