Computer code reflected in glasses in an arranged photo. (Photographer: Chris Ratcliffe/Bloomberg)
This week the Supreme Court put to rest a two decade-old tax dispute relating to cross-border software transactions. The court denied the revenue department’s claim that payments for such transactions should be taxed as ‘royalty’.In doing so, the bench overturned the Karnataka High Court order in the Samsung Electronics’ case, which was applied by the tax department in majority of the cases. For instance: IBM India Ltd., Hewlett Pack...