Assessee-Swedish company received management service fees from its Indian subsidiaries, department’s view that said receipts were in nature of Fees for Technical Services (FTS). Alternate, case of the department was, said receipts to be treated in nature of dividend taxable under DTAA between India and Sweden as well as u/s.9(1)(iv). Tribunal held that, management service fees from its Indian subsidiaries is neither taxable as fees for technical services nor as dividend. Reimbursement of expenses is not taxable in the absence of any permanent Establishment in India. (AY. 2009 – 2010)
Sandvik AB v. DIT (2019) 178 ITD 128 (Pune)(Trib. )
S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services–Management service fees from its Indian subsidiaries-Not taxable as fees for technical services and not as dividend-Reimbursement of expenses-DTAA-India-Swedish [S. 9(1)(iv), Art. 10, 12]