https://www.taxtmi.com/caselaws?id=4678 Recurring charges for telecom bandwidth were examined as a service arrangement rather than payment for equipment use. The AAR held that royalty arises only where the recipient acquires possession, control, or a real right to use equipment or a process; mere access to a connectivity facility through the provider's own network is insufficient. It also held that fees for included services require technical knowledge or skill to be made available for independent application, which was absent here. The source-of-income exception for royalty or technical fees was denied because the relevant operations and income-generating activity were in India. The permanent establishment question was left open for determination on fuller material. en-us Fri, 18 Jul 2008 00:00:00 +0530 Mon, 08 Sep 2025 15:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4678 Recurring charges for telecom bandwidth were examined as a service arrangement rather than payment for equipment use. The AAR held that royalty arises only where the recipient acquires possession, control, or a real right to use equipment or a process; mere access to a connectivity facility through the provider's own network is insufficient. It also held that fees for included services require technical knowledge or skill to be made available for independent application, which was absent here. The source-of-income exception for royalty or technical fees was denied because the relevant operations and income-generating activity were in India. The permanent establishment question was left open for determination on fuller material. Case-Laws Income Tax Fri, 18 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4678