Payment towards bandwidth services cannot be characterized as royalty under India-UAE DTAA

iSAT Africa Limited FZC Vs DCIT (ITAT Mumbai) ITAT Mumbai held that payment towards bandwidth service without transfer of right to use equipment or process could not be characterized as ‘royalty’ under section 9(1)(vi) or Article 12 of India-UAE DTAA. Thus, appeal decided in favour of assessee. Facts- The assessee [ISAT Africa Ltd FZC] is a Non-Resident entity, tax resident in UAE. It is noticed that M/s. BT Global Communication (BTGC) India Pvt. Ltd. had made various remittances to non-resident entities, including ISAT Africa Ltd FZC, on which it had not deducted any TDS. M/s. BTGC had e...