Interconnect Charges Not Royalty: HC Dismisses Revenue Appeal

DCIT (International Taxation) Vs Belgacom International Carrier Services Sa Belgium (Karnataka High Court) The Karnataka High Court considered whether interconnect service charges paid to foreign telecom operators constitute royalty and are thus taxable. The issue had already been addressed by a Co-ordinate Bench in an earlier judgment dated 14.07.2023, which held that such payments for interconnect services and transfer of capacity in foreign countries do not amount to royalty. The earlier ruling also noted that, in subsequent assessment years, the Income Tax Appellate Tribunal had held that ...