SOFTWARE IS A CORNER STONE IN ANY DIGITAL BUSINESS “We live in a software powered world”- This statement by Microsoft CEO, Satya Nadella, aptly highlights the role played by software companies in building and supporting modern day digitalised economy. Technology has bolstered innovation majorly in all aspects of business processes and software is the linchpin to this technology development since every technology advancement is backed by some innovative software. Software companies offer solutions in varied manner- for instance, provision of software as a service, licensing software for use, sale of software embedded on hardware. Also, at times software solutions offered are customised as per customer needs or sometimes standard software solutions are offered. This article focuses on tax.......