2022 (9) TMI 1585

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..... question that arises for consideration in the assessee's appeal is whether the bandwidth services are covered as "Equipment Royalty" or "Process Royalty" under Article 12 of the India, Singapore Tax Treaty. The Ld. Counsel for the assessee submits that the assessee is a company incorporated in Singapore and is a tax resident of Singapore. It is engaged in the business of providing digital transmission of data through International Private Line ('IPL') or Multi-Protocol Label Switching ('MPLS'), etc. to facilitate high-speed data connectivity (hereinafter referred to as 'bandwidth services'). The Ld. Counsel for the assessee submits that the assessee provides bandwidth services outside India to its customers. It has entered into Global Busin .....

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..... has relied upon: i) Madras High Court decision in the case of Verizon Singapore Pte. Lt. Vs. ITO (2013) 39 taxmann.com 70 (Madras); and ii) Special Bench of Delhi ITAT decision in the case of New Skies Satellite NV vs. ADIT (2009) (126 TTJ 1). 4. The Ld. Counsel submits that since the assessee is a tax resident of Singapore, it would be governed by the provisions of Article 12 of the Tax Treaty to the extent that these are more beneficial. The definition of royalty as per Article 12 of the India - Singapore Tax Treaty is enclosed on page no. 427 to 446 of the Paper Book. Bandwidth services are not equipment/process royalty under the Tax Treaty. The Ld. Counsel submits that as per the definition of 'royalty' in Article 12 of the Tax Tr .....

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..... ellite Telecommunications Co. Ltd. (332 ITR 340) and a series of decisions of the ITAT Delhi Benches as under: * Verizon Communications India Pvt. Ltd. ITA No. 2235/Del/2019, dated 30 March 2020; * Thaicom Public Co. Ltd. (2018) 96 taxmann.com 577, dated 26 April 2018; * Independent New Services (P) Ltd. (2018) 90 taxmann.com 163, dated 25 January 2018; * Geo Connect Limited ITA Nos. 1927/Del/2008 & 127/Del/2011, dated 17 January 2017; * Bharti Airtel Ltd. (2016) 67 taxmann.com 223, dated 17 March. 6. The Ld. DR supported the orders of the authorities below. 7. Heard rival submission, perused the orders of the authorities below and the decision of the Tribunal in assessee's own case for the assessment years 2010-11 and 2012-13 i .....

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