Software royalty likely to cost Centre Rs 5,000 crore every year

The Centre is likely to lose more than Rs 5,000 crore annually in corporate tax after its plea on imposing tax on payment abroad for software was turned down in the Supreme Court, ending a 20-year-old dispute between companies and the Income-Tax Department.
 
The apex court has settled the long-pending dispute that involved companies such as Samsung Electronics, IBM, Hewlett Packard, Mphasis, Sonata Software, and GE India.
 
According to sources, the department is examining the court’s ruling and seeking legal opinion on it.
 
“We have done an internal assessment. We are also looking at provisions to assess