https://www.taxtmi.com/caselaws?id=790986 Payments for International Private Leased Circuit bandwidth and telecommunication facilities provided outside India to a non-resident did not constitute royalty for the relevant pre-2012 periods. Explanations 4 to 6 to section 9(1)(vi), inserted by the Finance Act 2012, enlarged the royalty definition rather than merely clarifying it and therefore operated prospectively from 1 April 2012. As the non-resident had no taxable business connection or permanent establishment in India, the payments were not taxable in India. Consequently, no withholding obligation arose under section 195, and related default, interest and disallowance consequences under sections 201, 201(1A) and 40(a)(i) were unsustainable. en-us Thu, 30 Apr 2026 00:00:00 +0530 Mon, 04 May 2026 07:57:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790986 Payments for International Private Leased Circuit bandwidth and telecommunication facilities provided outside India to a non-resident did not constitute royalty for the relevant pre-2012 periods. Explanations 4 to 6 to section 9(1)(vi), inserted by the Finance Act 2012, enlarged the royalty definition rather than merely clarifying it and therefore operated prospectively from 1 April 2012. As the non-resident had no taxable business connection or permanent establishment in India, the payments were not taxable in India. Consequently, no withholding obligation arose under section 195, and related default, interest and disallowance consequences under sections 201, 201(1A) and 40(a)(i) were unsustainable. Case-Laws Income Tax Thu, 30 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790986