Taxation

Microsoft Told to Pay Tax on Licence Fee (in India, not Washington)

Posted by Jeff from Yro.slashdot

The company, which sells its software in India through a circuitous route involving several group companies, had maintained that its deal with the customers is a sale and no royalty payment is involved. It is this position that has now been rejected. What nailed the issue, however, was an expression in the end-user agreement that says "the product is licensed, not sold". Tax authorities cited this and said if the software is licensed, there has to be a royalty involved.

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