Payment for use of transponder capacity for up-linking /downlinking data would not constitute royalty

Citation: Asia Satellite Telecommunication Co. Ltd. Vs. Director of Income tax (Delhi High Court)- Tax case ( Appeal Nos) ITA No. 131/134 of 2003 dated 31st January, 2011 Background • Asia Satellite Telecommunication Co. Ltd. (Taxpayer) is a company incorporated in Hong Kong and carried on the business of providing transponder capacity on its satellite communication and broadcasting facilities. It entered into agreements with television channels, communication companies etc (customers) who were not residents in India to provide transponder capacity of its satellite. • In respect of the mod...