Assessee, Netherlands based dredging contractor, filed its return of income declaring a business loss. VOIPL a subsidiary of assessee in India, had entered into a service agreement with assessee to avail ongoing assistance and support in field of information technology, operations, quality, health & safety estimating and engineering, marketing, administration, personnel, etc..  For rendering above services, assessee had recovered a certain sum from VOIPL, without any markup.  Assessing Officer had considered said payments to be for use of information concerning industrial, commercial or scientific experience in India and had, accordingly, held same to be taxable as royalty in India. DRP approved the draft assessment order.  On appeal the Tribunal held that   since for rendering of these services, there was no element of imparting of any know-how or transfer of any knowledge, skill or experience, none of services provided by assessee in terms of ‘service agreement’ fell within scope and ambit of ‘royalty’ as defined in article 12(4). Since management services fees charged was on allocation of cost which was without markup, same being in nature of reimbursements did not constitute royalty as per India-Netherlands DTAA. (AY. 2020-21)