Charges Paid For Bandwidth To Overseas Telecom Operators Not Royalty U/S 9(1)(vi) Of Income Tax Act: Delhi HC Rejects Plea Against Airtel

Delhi HC ruled that charges paid for bandwidth to overseas telecom providers don't constitute royalty under Income Tax Act, dismissing a plea against Airtel. The judgment provides important clarification on characterization of telecom payments, distinguishing between royalty payments and service fees in the digital economy context. This decision has significant implications for cross-border telecom transactions and withholding tax obligations of Indian companies.