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The complexities of tax residency certificates in 2024

The complexities of tax residency certificates in 2024
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Importance of Section 90(1) Notification in DTAA: SC's Ruling

Learn why a Section 90(1) notification is crucial for a DTAA's enforcement, as per the Supreme Court's landmark judgment in AO vs. Nestle SA. Understand its impact and implications. ....

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Impact of Supreme Court Decision on Software Payments Taxation

Monday, March 8, 2021
SC” or “
Court”) while ruling in favour of the taxpayers has put to rest the controversy on characterization of payments made by Indian residents for use / resale of computer software (“
Judgement”).
1 The SC held that the amounts paid by resident Indian end-users / distributors to non-resident computer software manufacturers / suppliers, as consideration for the resale / use of the computer software through End-user Licensing Agreements (“
EULAs”) / distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India. Accordingly, the SC concluded that the person referred to in section 195 of the Income-tax Act, 1961 (“ ....

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