https://www.taxtmi.com/caselaws?id=445390 ITAT Bangalore ruled in favor of the assessee regarding TDS obligations under section 195 on payments to non-resident telecom operators for bandwidth and interconnect services. The tribunal held that interconnectivity utility charges received by non-resident operators cannot be classified as royalty under section 9(1)(vi) or India-Netherlands DTAA Article 12(4). The payments constitute business profits taxable in the resident country, not India, as no permanent establishment was established. The DTAA definition of royalty is narrower than domestic law, and the services provided did not involve transfer of equipment use or secret processes. en-us Mon, 09 Oct 2023 00:00:00 +0530 Mon, 06 Nov 2023 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445390 ITAT Bangalore ruled in favor of the assessee regarding TDS obligations under section 195 on payments to non-resident telecom operators for bandwidth and interconnect services. The tribunal held that interconnectivity utility charges received by non-resident operators cannot be classified as royalty under section 9(1)(vi) or India-Netherlands DTAA Article 12(4). The payments constitute business profits taxable in the resident country, not India, as no permanent establishment was established. The DTAA definition of royalty is narrower than domestic law, and the services provided did not involve transfer of equipment use or secret processes. Case-Laws Income Tax Mon, 09 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445390