https://www.taxtmi.com/caselaws?id=451281 Interconnect usage charges received by a non-resident telecom operator were held not taxable in India as royalty under the Income-tax Act and Article 12 of the India-Sri Lanka DTAA because the Indian payer only received carriage and connectivity services, with no transfer of any right to use the operator's network, equipment, intellectual property or secret process. The domestic deeming expansions in the royalty definition could not be read into the treaty absent a corresponding amendment, and section 90(2) entitled the assessee to the more beneficial treaty position. The treaty definition of royalty also did not cover the receipts, and the absence of a permanent establishment in India supported non-taxability as business income. en-us Mon, 15 Jan 2024 00:00:00 +0530 Mon, 05 Jan 2026 11:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451281 Interconnect usage charges received by a non-resident telecom operator were held not taxable in India as royalty under the Income-tax Act and Article 12 of the India-Sri Lanka DTAA because the Indian payer only received carriage and connectivity services, with no transfer of any right to use the operator's network, equipment, intellectual property or secret process. The domestic deeming expansions in the royalty definition could not be read into the treaty absent a corresponding amendment, and section 90(2) entitled the assessee to the more beneficial treaty position. The treaty definition of royalty also did not cover the receipts, and the absence of a permanent establishment in India supported non-taxability as business income. Case-Laws Income Tax Mon, 15 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451281