The Mumbai Income Tax Appellate Tribunal recently issued a decision on whether India's domestic definition of royalties as amended applies under the 1988 income and capital tax treaty with the Netherlands. The case involved Netherlands-based Baan Global BV (Baan), which develops and sells software. In the 2008-09 tax year, Baan had a distribution agreement with its Indian subsidiary for the sale of software to Indian customers. Under the agreement, the subsidiary was only responsible for taking orders and accepting payment for the software from the customers, and then remitting payment to Baan less an arms-length commission. In its tax return...