Receipt of Software license amounting to Rs.86,05,13,407/- cannot be charged to tax as ‘Royalties’ under the DTAA. In the same manner, the amount will escape taxation as ‘Business profits’ under Article 7 also because of it not having any PE in India. Albeit Explanation 4 to section 9(1)(vi) is applicable to the year under consideration, but section 90(2) of Act states that where the Central Government has entered into an agreement with the Government of any country outside India under sub-section (1), then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall apply to the extent they are more beneficial to that assessee. ANSYS INC. vs. ACIT (INTERNATIONL TAXATION) ITAT PUNE Jun 15, 2021 Section 9(1)(vi) and Article 12 of India-US DTAA. AY 2009-10 & 2014-15.Decision in favour of: Assessee
