Interconnect Service Payments Not Royalty: Karnataka HC

DCIT Vs Belgacom International (Karnataka High Court) Karnataka High Court, in the case of DCIT Vs Belgacom International, addressed the specific legal question of whether interconnect service charges paid by a company to non-resident telecom operators (NTOs) are classifiable as “Royalty” and thus subject to tax deduction at source under the Income Tax Act, 1961. The Court relied entirely on the binding precedent set by its own Co-ordinate Bench in the judgment dated July 14, 2023, delivered in ITA.No.160/2015 and connected appeals (referred to as Viacom by the ITAT in subseq...