Bandwidth Charges Exempt from TDS as They Do Not Constitute Royalty: ITAT Favors Bharti Airtel Ltd [Read Order]
The tribunal concluded that the payments made to foreign telecom providers in treaty countries were not subject to TDS, ultimately ruling that Bharti Airtel Ltd. was not required to deduct tax at source on these remittances
The Delhi Bench of Income Tax Appellate Tribunal(ITAT) ruled in favor of Bharti Airtel Ltd., stating that bandwidth charges were exempt from Tax Deducted at Source (TDS) as they do not constitute royalty under Section 9(1)(vi) of the Income Tax Act,1961 or relevant Double Taxation Avoidance Agreements (DTAAs). Bharti Airtel Limited,the appellant-assessee, a resident corporate…
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