I am able to take control of remote machine through Skype for business and MS teams. I can move cursor on remote machine but not able to perform any further actions.

Could you do a quick troubleshoot steps as shown below:

If possible, use an Ethernet cable to plug in your computer directly into the modem or router.

Close other programs.    File-sharing applications, streaming audio or video or even just having a web browser open are all things that eat up bandwidth.

Check your speed.    For a high-quality video call, both you and the other participant need to have enough bandwidth. Do a speed test online
Update your hardware.  

Check with the other participant.

Also, check you have the latest skype
https://support.microsoft.com/en-us/help/3123065/how-to-obtain-the-latest-update-for-skype-for-business-2016

Note: - Bandwidth or machine memory is not an issue. Looks like something is blocking mouse actions.

Is there any way to resolve it?

Is the other end using multiple monitors?
You may have issues when using multiple monitors.

Applications running locally on the user device or in other sessions cannot be shared, because the hosted Skype for Business client can only “see” applications running in the same session.

Also check the graphics card is compatible as shown in the link below:
https://docs.microsoft.com/en-us/skypeforbusiness/plan-your-deployment/clients-and-devices/video-resolutions

Also check the Port and protocol requirements for servers:
https://technet.microsoft.com/en-us/library/gg398833.aspx?f=255&MSPPError=-2147217396

This is not an answer just a question/statement. This seems a rather cumbersome way to do remote control. Why not use TeamViewer or Zoom?

Hi,

I think it has to do something with whether or not the specific applications are publised or not.

ie. locally running applications on the particular device or in any other session will not be shared at all. This is due to the fact that the Skype for Business client (hosted) only notices applications that are running in the same session.

Cheers

1) I'm using multiple monitor but not the remote user. He has single laptop screen.
2) Zoom or Teamviewer can not be used as its corporate network. Only approved software can be used.
3) Yes checked it only for the applications hosted on cloud accessed through the remote machine. If locally installed applications can be accessed fine that means is it the limitation of Skype or MS Team that it can not control cloud applications (remotely hosted application) when taken a control through remote?

The other side person is connected to another remote machine through Hyper-V manager. Needs support on that remote machine. Not sure if he has Admin control on that machine.