Assessee, a non-resident-company, was engaged in business of undertaking survey of ships for inspection, classification and certification, etc.-A company named (LRS) had been carrying on business of survey, inspection, classification and certification of ships. LRS had entered into a license agreement for grant of license to use its intellectual property to assessee and also management services agreement with assessee and management fees had been paid by assessee to LRS as per management services agreement. Assessing officer disallowed the payment for failure to deduct tax at source. DRP treated management fees as fees for technical services being ancillary and subsidiary to enjoyment of rights under license agreement. On appeal the Tribunal held that since none of tests specified in Memorandum of Understanding which forms part of DTAA in respect of services being ancillary and incidental to enjoyment of rights under license agreement, had been fulfilled in present case, agreement towards management services could not be regarded as ancillary and subsidiary to enjoyment of property under license agreement and consequently, assessee’s services were managerial in nature and not technical services. Assessee was not liable to deduct TDS.  (AY. 2010-11 to 2015-16)