1 June 20266 min read

Software Royalty Payments under FEMA: Remittance and Tax Guide

Learn about withholding tax (TDS) and FEMA remittance declarations for software license and royalty payments overseas.

FEMARCMIP

Software Royalty Remittances

Overseas payments for software licenses are classified as royalties and subject to double taxation treaty rules. You must deduct TDS (typically 10% under Section 195) and submit Form 15CA/15CB to your bank to approve the foreign remittance under FEMA rules.

Stop guessing on tax rules

Get an instant CA audit of your transaction

FiscLane uses structured compliance algorithms to check GST export eligibility, RCM liability, and FEMA purposed compliance in seconds.

Try FiscLane Free