Income Tax Act provides deductions exclusively to authors who earns royalty on books . These deductions are provided under section 80QQA and 80QQB of the I.T.Act . While the provision u/s 80QQA is for deduction of 25 % on income for writing of text books for college or university , the deduction u/s 80QQB is...
CBDT: 6 Reasons for TDS on Software Purchase !
June 17, 2012 by
TDS on software purchase is a controversial issue which has been settled in favour of income tax department recently by Karnataka High Court by its decision in CIT (International Tax) vs Samsung Electronics 2011 16 taxmann.com 141 in which it was held that in software purchase , whatis bought is the right to use the...
Payment to Non Residents for Right to Access Online Database Requires TDS !
February 18, 2012 by
TDS on payments to Non Residents are really vexed issue and much controversy has arisen on the issue whether the deduction of tax at source on the payments for imports of software. Recently, the Karnataka High court held in CIT (International Taxation) vs Samsung Electronics Co Ltd [2011] 16 taxmann.com 141(Kar.) that Payment to Non...
Delhi High Court: No TDS on Payment to Microsoft for buying Software & Selling in India as It is Not Royalty Payment .
July 31, 2011 by
Delhi High Court in CIT vs Dynamic Vertical Software India (P) Ltd.332 ITR 222 vide its order dated 22/02/2011 held that in case the software is being puchased by Indian trader and sold in India, the payments made to outside software company is not royalty , therefore , no tax is deductible. The issue before...
Under Which Head Royalty Taxable?
February 4, 2010 by
Question about royalty taxation under India income tax laws: I am a 34 year old person who has invented certain formulas related to nutritional supplements which will be manufactured in the USA but I am residing in Noida and shall be receiving 50% of the sales proceeds (in USA) as royalty fees regularly every month or quarterly as decided by me. Until now my
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