Bharti Airtel Not Liable To Pay TDS Towards Remittance Of Bandwidth Charges And Agency Fees: Delhi ITAT

The Delhi ITAT ruled that Bharti Airtel is not liable to pay TDS on remittance of bandwidth charges and agency fees. The tribunal held that the payments made by Bharti Airtel to foreign entities for bandwidth services do not constitute fees for technical services (FTS) under the Income Tax Act. The ruling emphasized that the payments were for standard services and did not involve the transfer of technical knowledge or expertise. This decision clarifies the tax obligations of telecom companies regarding payments for bandwidth services, ensuring that such payments are not subject to TDS under the Income Tax Act.