Case Law Analysis
|Income Tax Appellate Tribunal
Satellite Bandwidth Payments Not Royalty Under Section 9(1)(vi) | DTAA Prevails Over Finance Act 2012 Retrospective Amendments : ITAT Delhi
The ITAT Delhi has ruled that payments for satellite bandwidth services do not qualify as royalty under Section 9(1)(vi) of the Income Tax Act, even after the Finance Act 2012’s clarificatory amendments. This affirms that Double Taxation Avoidance Agreements take precedence over domestic tax law changes, protecting foreign service providers from retrospective TDS demands and setting a critical precedent for cross-border digital infrastructure payments.