Held that the amount received in respect of Cost Contribution Agreement (CCA) with group company, incorporated in UK, for provision of Business Support Services (BSS), since services were in nature of managerial services and not technical services which made available, same were not taxable as fee for technical services (FTS) in hands of assessee. Similarly the amount received by assessee, a UK based company, towards usage charges of software was not payment of royalty for use of copyright in computer software, and same did not give rise to any income taxable in India. (AY. 2011-12)
Shell international petroleum company Ltd. v. ACIT (IT) (2025) 211 ITD 302 (Mum)(Trib)
S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services-Cost Contribution Agreement (CCA) with group company, incorporated in UK, for provision of Business Support Services (BSS)-Services were in nature of managerial services and not technical services-Not taxable as fee for technical services (FTS)-The amount received by assessee, a UK based company, towards usage charges of software was not payment of royalty for use of copyright in computer software, and same did not give rise to any income taxable in India-DTAA-India-UK [S. 9(1)(vi), Art. 13]
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