Amount received towards Interconnectivity Utility charges from Indian Customers was not taxable as Royalty

KDDI Corporation Vs DCIT (ITAT Bangalore) Conclusion: Payments received by assessee towards interconnectivity utility charges from Indian customers or end users could not be considered royalties to be brought to tax in India  under Article 12 of India -Japan DTAA as Explanations 5 and 6 to section 9(1)(vi) were not found in the definition of “Royalty” under India-Japan DTAA. The definition of “Royalty” under the DTAA was much more narrower in its scope and coverage, than the definition of “Royalty” contained in section 9(1)(vi) r.w. Explanations 2, 5 and 6 of the Act. Held: Assess...