Interconnect usage and roaming charges paid to FTO are not royalty hence not taxable in India

Vodafone Idea Limited Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that the interconnect usage charges and roaming charges paid to Foreign Telecom Operators [FTOs] are not in the nature of royalty and hence not taxable in India. Thus, disallowance u/s. 40(a)(i) for non-deduction of TDS not justified. Accordingly, appeal allowed to that extent.

Facts- The assessee company is engaged in the business of providing cellular mobile service and trading of handsets and accessories. The assessee’s case was selected for scrutiny under CASS and notices u/s. 143(2) and 142(

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