Hon’ble Supreme Court of India in the matter of Engineering Analysis Centre Private Limited vs. The Commissioner of Income Tax LL 2021 SC 124 has settled an important issue in income tax wherein it has been decided that the amount paid for software developed by the foreign companies and used by Indian Companies do not amount to “Royalty”, hence no tax to be deducted at source by the Indian companies. BACKGROUND That in the present case Engineering Analysis Centre Private Limited (“the company”) is an end user for shrink wrapped computer software which is imported directly from The United States Continue Reading