The Revenue treated assessee as \u201cAssessee in default\u201d for failure to deduct TDS on payments to NTOs\/capacity providers, alleging chargeability in India as royalty\/FTS. High Court held that the DTAA must be considered in Sec. 201 proceedings; Explanation 4 to Sec. 9(1)(vi) is not merely clarificatory, and that the payments for foreign interconnect\/capacity are not taxable as royalty. Further, Indian authorities lack jurisdiction over extra\u2011territorial income from foreign companies with equipment abroad and no Permanent Establishment. The Hon\u2019ble Supreme Court dismissed SLP of revenue. (AY. 2008-09 to 2015-16)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Payments to non-resident telecom operators for offshore interconnect\/capacity are not \u201croyalty\u201d-Not liable to deduct tax at source-DTAA-India-Belgium. [S.201, Art. 12, Art. 136] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59511","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ftR","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59511"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59511\/revisions"}],"predecessor-version":[{"id":59512,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59511\/revisions\/59512"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}