Assessee, UAE based company provided management and technical consultancy services to its Indian AE and received a fee. It did not offer said fee for taxation on ground that DTAA does not have any specific clause on taxability of fees for technical services and, hence, said receipt was taxable as business income. Since employees of assessee had worked for an aggregate period of 156 solar days and, thus, period of working was less than 9 months, assessee had no PE in India, and, consequently, impugned receipt was not taxable in India. (AY. 2011- 2012)
Booz & Company (ME) FZ-LLC v. Dy. DIT(IT) (2018) 192 TTJ 33(UO) (Mum)(Trib.)
S. 9(1)(vii) : Income deemed to accrue or arise in India – Fees for technical services -Fees for Services received by UAE Company from Indian company was business income in hands of said company as per DTAA between India and UAE and in absence of any PE of any said company in India, business income could not be taxed in India-DTAA-India-UAE. [Art. 5, 7, 12]