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2017 (8) TMI 1429 - AT - Income TaxTDS u/s 195 - holding that the payments of transponder fees by the Appellant to Intelsat Corporation, USA, ('Intelsat') as taxable as 'royalty' - India-USA Tax Treaty - Held that:- As decided in assessee's own case [2014 (4) TMI 737 - ITAT MUMBAI] the payments were made to the Intelsat is for user of transponder capacity by the assessee for telecasting/broadcasting of its various programmes on television channels including marketing and advertising airtime etc. The application of the term 'royalty' to the transaction on the premise of territorial jurisdiction in-as-much as the said 'process' was not being used in India - Without doubt, the rights in or for the use of the process vesting in the assessee are located in India, where at the signals are downlinked as also uplinked from – it has to be read in conjunction with Explanation below section 9(2), inserted on the statute by Finance Act, 2007 w.r.e.f 01.06.1976 The use of transponder by the assessee for telecasting/broadcasting the programme involves the transmission by the satellite including uplinking, amplification, conversion for downlinking of signals which falls in the expression "Process" as per Explanation 6 of section 9(1)(vi) - the payments made for use/ right to use of process falls in the ambit of expression "royalty" as per DTAA as well as provisions of Income Tax Act – there was no reason to interfere in the decision of CIT(A) – Decided against Assessee.
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