Assessee was a patent attorney who rendered legal services in his capacity as an Advocate in India. His services were engaged by Indian clients for obtaining registration of patents and IPRs owned by them in foreign jurisdictions.  In order to comply with legal formalities associated with registration of IPRs with patent authorities of respective countries, assessee got assistance of IP attorneys carrying on similar professional activities in respective countries where IP registrations were sought to be obtained and paid fees for such services. The AO held that payment was liable to deduct tax at source Before the Tribunal the Assessee contended that services performed by foreign attorneys were merely clerical or executionary in nature which did not involve any specialized knowledge, nor it involved rendering of any advisory service and as such payments made to foreign patent attorneys would not come within ambit of ‘fees for technical services’. Tribunal held that since laws conferring IP rights on parties are complex in nature, rendering of service in this field would constitute specialised branch in field of legal services. and  since foreign attorneys not only advised assessee in preparing documentation necessary for submission of applications but also represented, applicants before Patent/IP authorities and provided clarifications and explanations necessary for grant of registration, services rendered by foreign attorney to assessee would come within ambit of section 9(1)(vii) of the Act. However, matter was to be restored to Commissioner (Appeals) to examine assessee’s plea that payments were non-taxable in India because of beneficial provisions of DTAAs with respective countries.  (AY. 2011-12)