Dismissing the appeal of the Revenue the Tribunal held that the transponder charges were not in the nature of royalty. The term used secret formula or process and not process, therefore the meaning of the term process could not be incorporated in the agreement because then meaning of the word secret therein would became redundant. The payment is not subjected tax withholding. (AY. 2017-18 to 2020-21)
ACIT v. Viacom 18 Media Pvt Ltd (2023) 101 ITR 586 (Mum)(Trib)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty- Non-Resident-Use of Transponder services-Secret formula or process-Not liable to tax in India-Not liable to deduct tax at source-DTAA-India-Malaysia [Art. 12, 13]