https://www.taxtmi.com/caselaws?id=798884 Operational expenditure incurred to run, maintain and improve an existing telecom network remains revenue expenditure where it lacks a demonstrated nexus with creating or acquiring a capital asset, notwithstanding its allocation to capital work-in-progress in the accounts. Its deduction is governed by its real tax character rather than book presentation. Payments to non-resident telecom operators for connectivity, voice termination, bandwidth, and operation-and-maintenance services are not royalty or fees for technical services where the payer receives no right to use equipment or processes and no technical capability is made available. In the absence of a permanent establishment, such payments are not taxable as business profits in India, removing withholding and related disallowance exposure. en-us Fri, 21 Aug 2026 00:00:00 +0530 Mon, 14 Sep 2026 08:32:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798884 Operational expenditure incurred to run, maintain and improve an existing telecom network remains revenue expenditure where it lacks a demonstrated nexus with creating or acquiring a capital asset, notwithstanding its allocation to capital work-in-progress in the accounts. Its deduction is governed by its real tax character rather than book presentation. Payments to non-resident telecom operators for connectivity, voice termination, bandwidth, and operation-and-maintenance services are not royalty or fees for technical services where the payer receives no right to use equipment or processes and no technical capability is made available. In the absence of a permanent establishment, such payments are not taxable as business profits in India, removing withholding and related disallowance exposure. Case-Laws Income Tax Fri, 21 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798884