TaxTMI 
TaxTMI 
Full Text of Delhi High court case of Asia Satellite Telecommunications Co. Ltd Vs DIT (2011 (1) TMI 47 - DELHI HIGH COURT)= (2011-TII-05-HC-DEL-INTL Judgement date 31.01.2011) is required
Delhi High Court Case Law
15 Feb 2011 
2 Replies 
2003 Views Asked by
Taxability of satellite services: offshore satellite transmissions are not taxable in India when operations and control remain abroad.
Income received by an offshore satellite operator for uploading and retransmitting signals from satellites located outside India is not deemed to accrue in India solely because the satellite footprint covers India; absence of operations or relaying facilities in India means no business connection. Where the operator retains control and provides broadcasting functionality rather than transferring possession, payments characterised as transponder capacity are payments for services, not royalty or use of a process in India. (AI Summary)
Income received by an offshore satellite operator for uploading and retransmitting signals from satellites located outside India is not deemed to accrue in India solely because the satellite footprint covers India; absence of operations or relaying facilities in India means no business connection. Where the operator retains control and provides broadcasting functionality rather than transferring possession, payments characterised as transponder capacity are payments for services, not royalty or use of a process in India. (AI Summary)