Assessee, a US based company is  subsidiary of SEPL India. Assessee-company procured focal sales orders in US for its AE for products to be manufactured, executed by SEPL India, and received payment from customers which was remitted to SEPL India.Assessee received certain sum as commission on sales and marketing services  Assessing Officer held  that payments received by assessee from SEPL India were in nature of FTS under section 9(1)(vii) and was chargeable to tax in India under article 12 with Indo-USA DTAA. On appeal the Tribunal held that the  assessee, performed pure sales function with connecting potential customers from US by performing pre sales activity of introducing SEPL India to potential customers and rest of activity was predominantly taken care by SEPL India. The assessee did not render services resulting in provision FTS or make available technical knowledge to SEPL India. Accordingly   commission on sales and marketing services  cannot be treated as FTS in hands of assessee in terms of section 9(1)(vii). (AY. 2013-14, 2014-15)