No Tax on Payment for link charges to USA telecom service providers

Convergys Customer Management Group Inc. Vs ADIT (ITAT Delhi) The assessee made payment for link charges to telecom service providers in the USA and cross-charged the portion of the cost incurred by it in connection with the India half link to CIS, which was accordingly reimbursed by CIS to assessee. The assessee has merely procured a service and provided the same to CIS; no part of equipment was leased out to CIS. Even otherwise, the payment is in the nature of reimbursement of expenses and, accordingly, not taxable in the hands of the assessee. Therefore, the said payments do not constitute ...