A Limited Liability Partnership incorporated under Laws of United Kingdom (UK), providing legal advisory services to its clients worldwide including India. By rendering those services, assessee did not ‘make available’ any technical knowledge, know-how or experience to its clients. Accordingly the amount received by it was not taxable in India as fee for technical services-Article 15 of India-UK DTAA applies to determine taxable income in hands of individual and not other persons, assessee being a partnership firm, impugned amount of fee received by assessee for rendering legal advisory services was not taxable in India . Reimbursement of expenses being of routine nature and, moreover, there was no mark up involved amount in question could not be brought to tax as assessee’s income. (AY.2012-13)
Linklaters LLP v. DCIT (2018) 172 ITD 459 / 171 DTR 19(Mum.)(Trib.)
S. 9(1)(vii) : Income deemed to accrue or arise in India – Fees for technical services -A Limited Liability Partnership incorporated under Laws of United Kingdom (UK), providing legal advisory services to its clients worldwide including India-By rendering those services, assessee did not ‘make available’ any technical knowledge, know-how or experience to its clients-Amount received by it was not taxable in India as fee for technical services. – Article 15 of India-UK DTAA applies to determine taxable income in hands of individual and not other persons, assessee being a partnership firm, amount of fee received by assessee for rendering legal advisory services was not taxable in India- Reimbursement of expenses being of routine nature and, moreover, there was no mark up involved amount in question could not be brought to tax as assessee’s income-DTAA- India -UK. [S.90, Art. 5(2)(k), 7, 13, 15]