Assessee is a tax resident of USA. It entered into a service agreement with an Indian company for providing cloud infrastructure-managed private cloud, colocation and network services, mainframe services, disaster/data recovery services to a US based entity and received certain amount of consideration. The AO held that taxable in India. Commissioner (Appeals) held said consideration received by assessee not taxable in India. Tribunal affirmed the order of the CIT(A). (AY. 2018-19, 2019-20)
ITO (IT) v. Sungard Availability Services LP. (2023) 199 ITD 492 (Pune) (Trib.)
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Business profits-Services rendered outside India-Cloud, colocation and network services, mainframe services, disaster/data recovery services-Infrastructure services to a US based company in US-Not taxable in India-DTAA-India-USA [Art. 12]