Tribunal Rules Bandwidth Charges Not Royalty, Remands Maintenance Fees, Upholds Tax on Agency Fees in India Telecom Case.

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....The assessee, a resident corporate entity providing mobile telecom services in India, challenged the taxability of bandwidth charges remitted to foreign telecom service providers as royalty income u/s 9(1)(vi) of the Income Tax Act. The Tribunal, relying on the Delhi High Court's decision in Telstra Singapore Pte. Ltd., held that bandwidth charges cannot be treated as royalty for use or right to use equipment, secret formula or process. The amendment to domestic law cannot automatically apply to treaty provisions without corresponding changes. Consequently, the bandwidth charges paid by the assessee cannot be treated as royalty under treaty provisions or Section 9(1)(vi), and the assessee was not required to deduct tax at source. Regarding .........