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Fee for use of satellite is “royalty” under Act & DTAA
Case Law Details
- Case Name
- New Skies Satellites N.V. Vs. ADIT International Taxation [ITAT Delhi]
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2000-01, 2002-03, 2003-04 & 2004-05
- Courts
- All ITAT, ITAT Delhi
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RELEVANT EXTRACT
The assessee, a foreign company, was engaged in operating geostationary telecommunication satellites with transponder capacity which were provided to telecasting companies in India for a fee.
The question arose whether the said fee was “consideration for … the use of any … secret formula or process …” so as to constitute “royalty” under Expl. 2 to s. 9 (1)(vi) and corresponding definition under the DTAA.
In Asia Satellite 85 ITD 478 the Tribunal held that the said receipts were taxable as ‘royalty’ having been paid in respect of a “process”. However, in P...
