TDS not deductible on payments to Non-resident Telecom Operators

Vodafone Idea Limited Vs Deputy Director of Income Tax (Karnataka High Court) Karnataka High Court held that payments made to Non-resident Telecom Operators for provision of bandwidth and Inter-connectivity Usage Charge are not covered as Royalty/ FTS and, accordingly, TDS not deductible. Further, assessee is entitled to take benefit of DTAA between two countries. Facts- Assessee holds an ILD License and provides telecommunication services. It is responsible to provide connectivity to calls originating or terminating outside India. In order to provide ILD services, assessee avails certain serv...