The assessee, an Austrian company, entered into composite contracts for offshore supply of plant and equipment together with drawings and designs. Since the Tribunal had accepted that the offshore supply was not taxable in India, it held that the consideration received for supply of drawings and designs, being inseparable from the offshore supply contract, could not be taxed separately as Fees for Technical Services under section 9(1)(vii) or Article 12 of the India-Austria DTAA. The Assessing Officer taxed receipts from onshore supervisory services as Fees for Technical Services on a gross basis under Article 12. The Tribunal held that where the receipts were effectively connected with the assessee’s supervisory Permanent Establishment in India, they were taxable as business profits under Article 7 on a net basis. The matter was restored to the Assessing Officer to verify whether the receipts had already been offered to tax in the year of completion in accordance with the assessee’s method of accounting.  The Tribunal held that supervisory services rendered by the assessee under composite contracts involving erection, commissioning and technical supervision were technical services within the meaning of Article 12(4) of the India-Austria DTAA. Accordingly, the supervisory fee was taxable as Fees for Technical Services, irrespective of the existence of a Permanent Establishment.  The assessee recovered from its Indian group entities their share of common business and information service expenses without any mark-up under a cost contribution arrangement. The Tribunal held that the reimbursements contained no profit element and, therefore, could not be characterised as Fees for Technical Services taxable in India  (AY. 2011-12, 2012-13 & 2014-15).