Held that the fact that provision of services may require technical input by the person providing the service did not mean that technical knowledge, skills, etc., were “made available” to the person purchasing the service. Therefore, payment made by the assessee to the non-resident service provider could not be brought under article 12 of the Double Taxation Avoidance Agreement. (AY. 2010-11, 2012-13, 2013-14, 2016-17, 2017-18)
Dy. CIT (OSD) v. Aspire Systems India P. Ltd. (2024) 110 ITR 1 / 232 TTJ 387 (Chennai)(Trib)
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Deduction of tax at source-Non-Resident-Software development services rendered to overseas client-No transfer of specialised technical knowledge-Not fees for technical services-Not liable for tax deduction at source-DTAA-India-USA [S.195, Art.12]