https://www.taxtmi.com/caselaws?id=434596 Communication charges paid to a non-resident telecom provider were not chargeable to tax in India because the interconnection and automated communication services involved no human intervention and did not constitute fees for technical services under section 9(1)(vii) or Article 12(4)(b) of the Indo-US DTAA. As section 195 applies only to sums chargeable to tax, no tax was required to be withheld and disallowance under section 40(a)(i) was not sustainable. Software acquired under a limited user licence was treated as part of the computer system, not as a separately exploitable intangible asset, so depreciation at 60% was allowable. The Revenue's challenge failed and the appellate relief was sustained. en-us Wed, 22 Feb 2023 00:00:00 +0530 Mon, 27 Feb 2023 19:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434596 Communication charges paid to a non-resident telecom provider were not chargeable to tax in India because the interconnection and automated communication services involved no human intervention and did not constitute fees for technical services under section 9(1)(vii) or Article 12(4)(b) of the Indo-US DTAA. As section 195 applies only to sums chargeable to tax, no tax was required to be withheld and disallowance under section 40(a)(i) was not sustainable. Software acquired under a limited user licence was treated as part of the computer system, not as a separately exploitable intangible asset, so depreciation at 60% was allowable. The Revenue's challenge failed and the appellate relief was sustained. Case-Laws Income Tax Wed, 22 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434596