Tax is payable on import of all software, even if the sale does not involve exercise of copyright,
according to a Delhi tax tribunal order in a case relating to Microsoft.
While the order, passed on October 28, is significant in terms of the liability to withhold tax from payments made while importing software, the Delhi Income-Tax Appellate Order (ITAT) attracted the attention of tax professionals on account of its observation that questioned the sanctity of tax treaties.
In the order, which may spark multiple litigations, the division bench of ITAT observed that it is not necessary that provisions of tax treaties always override













