Income from bandwidth services provided outside India cannot be taxed as ‘Royalty’ under India-Singapore DTAA

Telstra Singapore Pte. Ltd. Vs DCIT (ITAT Delhi) Conclusion: Income received on providing bandwidth services outside India was not taxable as ‘Royalty’ under India-Singapore Double Taxation Avoidance Agreement (DTAA) as mere receipt of service using equipment under the control, possession and operation of service provider would only be considered as transaction of a service and not to ‘use or right to use’ an equipment, and would not attract ‘Royalty’ under the Act or the Tax Treaty. Also, the consideration received by assessee company was not taxable as ‘Royalty’ in vi...