https://www.taxtmi.com/caselaws?id=754197 Telecom interconnect usage charges received by a non-resident from Indian operators fall outside royalty where the recipient does not transfer intellectual property rights or grant possession, control, or exclusive use of equipment. The term "process" for royalty purposes covers an intellectual property-like process, not a standard commercial telecom connectivity process, and no secret process was involved. A treaty definition of royalty narrower than domestic law prevails despite retrospective domestic expansions. Without a permanent establishment in India, the charges constitute business profits taxable only in the recipient's residence State under the India-Japan DTAA. en-us Mon, 15 Apr 2024 00:00:00 +0530 Wed, 19 Jun 2024 15:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754197 Telecom interconnect usage charges received by a non-resident from Indian operators fall outside royalty where the recipient does not transfer intellectual property rights or grant possession, control, or exclusive use of equipment. The term "process" for royalty purposes covers an intellectual property-like process, not a standard commercial telecom connectivity process, and no secret process was involved. A treaty definition of royalty narrower than domestic law prevails despite retrospective domestic expansions. Without a permanent establishment in India, the charges constitute business profits taxable only in the recipient's residence State under the India-Japan DTAA. Case-Laws Income Tax Mon, 15 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754197