AAR ruled that payment by Indian company would be fees for technical services only in respect of direct technical advice, support and management including implementation service provided under information technology service, it is not royalty.  AAR also ruled that   while considering service permanent establishment mere stay of employees for periods exceeding 30 days in twelve-month period not sufficient, substantial evidence that service was rendered through employee for 30 days or more necessary. Accordingly the payment received are not business income. The payments made by Aircom India to the applicant would suffer withholding tax under section 195 of the Act only in respect of component of direct technical advice, support and management including implementation service provided under information technology service (IT) at the applicable rate. (AAR No.1329 of 2012 dt. 4-2-2021)