https://www.taxtmi.com/caselaws?id=311058 Bandwidth connectivity charges paid to a UK group entity were analysed as a service reimbursement for network access, not as royalty or fees for technical services under the Income-tax Act and the India-UK DTAA. Because the payer did not obtain any intellectual property right, exclusive use or control over equipment, or access to a secret process, the domestic royalty definition did not expand the treaty position. The payment also failed the "make available" requirement for technical services. As the remittance was not chargeable to tax in India, no withholding obligation arose under section 195 and the consequential default and interest consequences under sections 201(1) and 201(1A) did not apply. en-us Tue, 31 May 2022 00:00:00 +0530 Tue, 05 Dec 2023 21:03:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=311058 Bandwidth connectivity charges paid to a UK group entity were analysed as a service reimbursement for network access, not as royalty or fees for technical services under the Income-tax Act and the India-UK DTAA. Because the payer did not obtain any intellectual property right, exclusive use or control over equipment, or access to a secret process, the domestic royalty definition did not expand the treaty position. The payment also failed the "make available" requirement for technical services. As the remittance was not chargeable to tax in India, no withholding obligation arose under section 195 and the consequential default and interest consequences under sections 201(1) and 201(1A) did not apply. Case-Laws Income Tax Tue, 31 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=311058