Assessee, an Indian Company, entered into service agreement with UAE based company for carrying out project specification study, preparation of tower designs, preparation of structural drawings of tower, preparation of tower test data documents etc. and made payment for aforesaid services. Assessing Officer held that a payment was royalty and since assessee had failed to deduct tax on such payment, it was in default and liable to provisions under section 201(1) and 201(1A)  Commissioner (Appeals) held that payment for designing of towers made to UAE company was in nature of FTS and not royalty. On appeal the Tribunal held that  there was no existing tower structure design or data etc. which was supplied to assessee by UAE company, but it was a case of actual rendering of services where UAE company was required to create a new design in course of rendering service under service agreement based on specifications provided by assessee. In absence of FTS clause in India UAE tax treaty, payment made by assessee did not qualify as FTS under India-UAE DTAA and in absence of PE of UAE company in India, assessee had no obligation to withhold taxes on such payments. (AY. 2018-19)