Tax treatment of payments for bandwidth on underwater sea cable
The Delhi Bench of the Income-tax Appellate Tribunal held that payments received by the taxpayer (operating a call center) for bandwidth connectivity charges are not taxable as royalty payments or as “fees for technical services” under provisions of the Income-tax Act, 1961 or the India-United States income tax treaty. The case is: Geo Connect Ltd. Read a February 2017 report [PDF 371 KB] of KPMG