Tax v. ZTE Corporation

392 ITR 80High Court2017#2570 most cited

What is Tax v. ZTE Corporation authority for?

Payments for acquiring a software license, where only the right to use the software is granted and no copyright ownership is transferred, do not constitute 'royalty' under Section 9(1)(vi) of the Income Tax Act or the India-China Double Taxation Avoidance Agreement. The judgment clarifies the distinction between copyright transfer and a mere license to use by referring to Sections 13 and 14 of the Copyright Act.

45

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2017 to 2025.

Also referred to as

CIT v. ZTE Corporation · software royalty · copyright license · India-China DTAA · Section 9(1)(vi) · Section 195 TDS · royalty definition · software payments · DTAA benefits · withholding tax

Issues it is cited on

section 141section 9(i)section 2(43)section 14(a)section 193section 90(1)section 195(1)section 40(a)(ii)section 52section 195(2)azadi bachao andolansection 80h

Judgments citing Tax v. ZTE Corporation

The DDIT (It)-2(1), Mumbai vs. M/S. Reliance Communicatioins Ltd. ( Formerly Known As M/S. Reliance Infocomm Ltd), Navi Mumbai

ITA 4877/MUM/2007[]Status: DisposedITAT Mumbai02 Feb 2018

Bench: S/Sh. Rajendra & Ravish Sood

For Appellant: S/Shri J.D. Mistry/Deepak JainFor Respondent: S/Shri Parag Vyas- DR
Section 195Section 195(2)Section 254(1)Section 40Section 9

…ing to the provisions of the ICA,the AR stated that same were already considered in the various decisions by the Hon'ble High Court as well as Benches of Tribunal including Juris - dictional Tribunal.In that regard he relied upon the cases of ZTE Corporation (392 ITR 80), Reliance Industries Ltd.(69 taxmann.com 311),Baan Global BV(71 taxmann.com 213),Shell Information Technology International BV(80 taxmann.com 64),Qad Europe BV(77 taxmann. com 267);Solid Works Corpn.(supra)I.T.C. Ltd.(79 taxmann.com 206)Black Duck Software Inc.(86taxmann.com 62).He contended that the DR was factually incorrect in ascertaining tha…

ADIT (It)-2(1), Mumbai vs. M/S. Reliance Communications Ltd, Navi Mumbai

ITA 5080/MUM/2008[]Status: HeardITAT Mumbai15 Jan 2018
For Appellant: S/Shri J.D. Mistry/Deepak JainFor Respondent: Shri Parag Vyas - DR
Section 195Section 195(2)Section 254(1)

…(16taxmann.com371) (Del.- Limited 6 4901/Mum/2007 Reliance Communications Ericsson AB Sweden 19 Appls-RCL(15)+RTL(4) HC) Limited 7 4672/Mum/2007 Reliance Communications Ericsson AB Sweden Limited 8 5084/Mum/2008 Reliance Communications ZTE Corporation China 392 ITR 80 (Delhi) (HC) Limited 70 taxmann.com 1 9 4899/Mum/2007 Reliance Communications Alcatel USA International ITA No.7299 and 7300/ Limited Marketing Inc USA Mum/2010,order dated 25. 10 4927/Mum/2007 Reliance Communications Alcatel USA International 05.2017 and Limited Marketing Inc USA (43 SOT 31-(Mum- Trib.) 11 4255/Mum/2008 Reliance Communications Al…

M/S. Nortel Networks India International Inc., Gurgaon vs. DDIT, New Delhi

ITA 1087/DEL/2014[2010-11]Status: DisposedITAT Delhi26 Sept 2017AY 2010-11

Bench: Sh. N.K.Saini & Sh.K.N.Charry

Section 143(3)

…ht to tax. 22. The next issue relates to the levy of interest under section 234B of the Act. Ld. AR submitted that this issue also stands covered in favour of the Assessee by decisions of the Hon’ble Delhi High Court in the case of DIT Vs. ZTE Corporation (392 ITR 80) and DIT Vs. GE Packaged Power Inc. (373 ITR 65) (Del.). Be that as it may, in view of the finding of the Hon’ble High Court in assessee’s own case reported in (2016) 386 ITR 353 that no portion of the profits from off shore supplies was taxable in India, levy of interest becomes academic given the absence of any taxable income in India. 23. A…

M/S Nortal Networks India International Inc., Gurgaon vs. ADIT, New Delhi

ITA 3315/DEL/2012[2009-10]Status: DisposedITAT Delhi26 Sept 2017AY 2009-10

Bench: Sh. N.K.Saini & Sh.K.N.Charry

Section 143(3)

…ht to tax. 22. The next issue relates to the levy of interest under section 234B of the Act. Ld. AR submitted that this issue also stands covered in favour of the Assessee by decisions of the Hon’ble Delhi High Court in the case of DIT Vs. ZTE Corporation (392 ITR 80) and DIT Vs. GE Packaged Power Inc. (373 ITR 65) (Del.). Be that as it may, in view of the finding of the Hon’ble High Court in assessee’s own case reported in (2016) 386 ITR 353 that no portion of the profits from off shore supplies was taxable in India, levy of interest becomes academic given the absence of any taxable income in India. 23. A…

M/S Nortal Networks India International Inc., Gurgaon vs. ADIT, New Delhi

ITA 3313/DEL/2012[2006-07]Status: DisposedITAT Delhi26 Sept 2017AY 2006-07

Bench: Sh. N.K.Saini & Sh.K.N.Charry

Section 143(3)

…ht to tax. 22. The next issue relates to the levy of interest under section 234B of the Act. Ld. AR submitted that this issue also stands covered in favour of the Assessee by decisions of the Hon’ble Delhi High Court in the case of DIT Vs. ZTE Corporation (392 ITR 80) and DIT Vs. GE Packaged Power Inc. (373 ITR 65) (Del.). Be that as it may, in view of the finding of the Hon’ble High Court in assessee’s own case reported in (2016) 386 ITR 353 that no portion of the profits from off shore supplies was taxable in India, levy of interest becomes academic given the absence of any taxable income in India. 23. A…