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Microsoft loses tax appeal in India

EULA language trips it up
Thu Apr 03 2008, 12:44

TAX AUTHORITIES in India have denied Microsoft's administrative appeal of about $175 million in royalty taxes on its revenues there in 1999 through 2004.

Microsoft dominates the software market in India. The company had argued that its revenues came from software sales and were therefore not subject to India's 15 per cent royalty tax. It cited a trade agreement between the US and India meant to avoid double taxation of sales revenues in the two countries.

The tax appeals commission in Delhi didn't buy the Vole's position, however. It pointed to Microsoft's End User Licence Agreement (EULA), which states "the product is licensed, not sold." It said that revenues from software licences are royalties, not sales.

Microsoft said it is reviewing the order and indicated that it hasn't decided yet whether or not to appeal the ruling to higher authorities. µ

L'Inq
The Economic Times

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Comments
Beautiful, simply beautiful

Looks like the legal department will be working overtime to find a new wording while still shafting users as much as possible.
Personally, I've never really understood how I can buy a $20,000 car and mod it as I like, but if I buy a $400 DVD I have to treat it as a museum piece.
If it's a sale, it is mine to do as I wish, and if I want to resell it, then I will.
And if it is not a sale, then I have the right to a free replacement disk for the rest of my life.
So, MS, what is it actually ?

posted by : Pascal Monett, 05 April 2008 Complain about this comment
Ha ha LOL

I love it, MS got caught in it's own legal web.

Quote, " It pointed to Microsoft's End User Licence Agreement (EULA), which states "the product is licensed, not sold." It said that revenues from software licences are royalties, not sales."

It looks like India has a good point, hehe.


posted by : Regulas, 03 April 2008 Complain about this comment
yah but

they sold the disk and then the license to it. the Indian government wants to be like that i say sell a piece of paper with a working key but don’t fork over the disk then when they say ok no tax start selling the disk again and make the key only work with its specified disk that should show them to shut there trap. But since this is MS who cares they already make a load off of other countries.

posted by : Robert Hollar, 06 January 2008 Complain about this comment
aboutus
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