SC rejects bid to tax foreign software payments as royalty again granting big relief

Published on 11 May 2026

End user licenses do not transfer copyright, SC says

The Supreme Court dismissed the income tax department’s review petitions over whether payments for foreign software by Indian users should be taxed as royalty. Reaffirming its March 2021 ruling, the court said end-user licenses do not transfer copyright, so such payments are not royalty. The decision is expected to provide substantial tax certainty and relief to Indian companies buying software.

SC upheld its 2021 view on software payments to non residents
End user licenses do not amount to copyright transfer
Royalty tax claim by the income tax department was rejected
Indian firms buying foreign software gain clearer tax protection

#non resident #software #income tax #supreme court #royalty

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SC rejects bid to tax foreign software payments as royalty again granting big relief

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