Charges paid for international bandwidth to foreign telecom operators not taxable as royalty under Section 9(1)(vi) of Income Tax Act: Delhi High Court

In a significant judgment, the Delhi High Court has dismissed an appeal filed by the Income Tax Department, which claimed that Bharti Airtel should have deducted Tax Deducted at Source (TDS) on payments made to overseas telecom service providers for bandwidth services. The case revolves around whether such payments qualify as royalty or fees for technical services (FTS) under the provisions of the Income Tax Act, 1961. Background of the…