The Delhi Income Tax Appellate Tribunal recently issued a decision on whether payments for equipment maintenance services provided outside India are subject to withholding tax. The case involved India-based HCL Comnet Ltd. (HCL), a provider of network solutions and services for related equipment.
In the 2003-04 fiscal year, HCL made payments to an Israeli company for routine repairs, replacement, and maintenance services for equipment that was sent outside India and then returned after the w…