Executive summary
On 2 March 2021, the Indian Supreme Court1 ruled in favor of non-Indian taxpayers with computer software sales to Indian customers.2 The Court ruled that software sales should not be characterized as “royalties” under applicable tax treaty law, consequently not triggering Indian withholding tax in the absence of a permanent establishment (subject to the entity’s tax treaty eligibility).
This Alert summarizes the Supreme Court ruling and implications for taxpayers.
Detail…