The Bangalore ITAT in 28ITR(Trib) -OL 38 held that mere use of a facility is neither a payment for technical services nor in the nature of royalty.
This case involved web hosting , bulk mail facility/marketing services , advertising services on Facebook Amazon.
This litigation is an outcome of income tax survey. There have been Board circulars for clarification on TDS on domestic payments while there is no effective circular on foreign payments instances in the absence of which such kind of unnecessary litigations crop up even for such routine nature of transaction in the digital world.
Hope CBDT may attempt to draft few circulars explaining TDS on foreign payments.