The assessee entered into two separate agreements with Indian hotels viz. Licence agreement for grant of right to use its trade name and received licence fee for same and; Centralized Services Agreement (CSA) for providing hotel related services which included worldwide publicity, marketing and advertisement services through its system of sales, advertisement, promotion, public relation and reservations and received centralized service fee for same. Assessing Officer held that said centralised service fee was FTS/FIS under section 9(1)(vii) and article 12(4)(a) of DTAA, hence, taxable in India. CIT (A) held that  services rendered by assessee under CSA were ancillary and subsidiary to license fee paid by assessee under license agreement for granting right to use of trade name which was offered to tax in India as royalty. Tribunal held that   predominant object under centralised service agreement was advertisement, marketing and promotion of hotels-Centralized services fee received by assessee under centralised service agreement could not be considered to be ancillary and subsidiary to application or enjoyment of right of property or information for which royalty was paid. Accordingly   such centralised service fee received by assessee for providing services like publicity, marketing and advertisement could not be treated as FTS/FIS either under article 12(4)(b) of India-US DTAA. (AY. 2015-16, 2016-17)