{"id":13653,"date":"2016-05-26T16:58:04","date_gmt":"2016-05-26T11:28:04","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=13653"},"modified":"2016-05-26T16:58:04","modified_gmt":"2016-05-26T11:28:04","slug":"gujarat-pipavav-port-limited-v-ito-itat-mumbai-installation-services-provided-by-a-foreign-enterprise-which-are-inextricably-connected-to-the-sale-of-goods-are-not-assessable-as-fees-for-technical-s","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/gujarat-pipavav-port-limited-v-ito-itat-mumbai-installation-services-provided-by-a-foreign-enterprise-which-are-inextricably-connected-to-the-sale-of-goods-are-not-assessable-as-fees-for-technical-s\/","title":{"rendered":"Gujarat Pipavav Port Limited vs. ITO (ITAT Mumbai)"},"content":{"rendered":"<p>The Tribunal held that review of design does not amount to transfer of design and hence fees for the same cannot be taxed as FTS \/ FIS under the India US treaty.<\/p>\n<p>Though  service of installation is covered by the FTS clause as well as Installation PE clause of the India China treaty and though the installation contract (including period of after sales service) exceeded 183 days, the income from installation activity was neither taxable as FTS nor as business income since<\/p>\n<p>\u2022 the service of installation was inextricably connected to sale of goods, the same could not be treated as FIS or FTS <\/p>\n<p>\u2022 specific installation PE clause in India China Treaty will override General FTS clause<\/p>\n<p>\u2022 the aforesaid threshold limit of 183 days would have to  be applied to the actual period of installation (which was less than 183 days) and not the contractual period.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Though  service of installation is covered by the FTS clause as well as Installation PE clause of the India China treaty and though the installation contract (including period of after sales service) exceeded 183 days, the income from installation activity was neither taxable as FTS nor as business income since (i) the service of installation was inextricably connected to sale of goods, the same could not be treated as FIS or FTS (ii) specific installation PE clause in India China Treaty will override General FTS clause (iii) the aforesaid threshold limit of 183 days would have to  be applied to the actual period of installation (which was less than 183 days) and not the contractual period<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/gujarat-pipavav-port-limited-v-ito-itat-mumbai-installation-services-provided-by-a-foreign-enterprise-which-are-inextricably-connected-to-the-sale-of-goods-are-not-assessable-as-fees-for-technical-s\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":64,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-13653","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-tribunal","judges-rajendra-am","judges-ram-lal-negi-jm","section-1578","section-91vii","section-article-12","section-article-5","counsel-sunil-moti-lala","court-itat-mumbai","catchwords-fees-for-technical-services","catchwords-permanent-establishment","genre-international-tax"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/13653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=13653"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/13653\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=13653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=13653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=13653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}