Appellant had an infrastructure data centre at Singapore\u00a0 Under Infrastructure Data Centre (IDC) agreement, assessee Singapore company provided IT infrastructure management and mail box\/website hosting services to its India group companies from Singapore . Websites\/applications\/softwares hosted by Indian group companies on data centre in Singapore were web ordering application, corporate website, websites created for customers of Edenred India entities while making a loyalty program for them . Indian group companies neither accessed nor used CPU of appellant . All that Indian group companies received were standard IDC services . Bandwith and networking infrastructure was used by appellant to render IDC services .Tribunal held that\u00a0 Indian companies only got output of usages of such bandwith and network . Appellant only provided service by using its hardware\/security devices\/personnel and there was no use of any Software; no embedded\/secret software was developed by appellant – Further, consideration was for IDC services and not any specific program – Whether revenue under IDC agreement ought not to be taxed in hands of appellant as royalty under Act and\/or India-Singapore DTAA Assessee received management fee from Indian company SurfGold for consultancy services to support sales activities of SurfGold, legal services, financial advisory services and human resource assistance – Such management services were provided only to support SurfGold in carrying on its business efficiently and in line with business model, policies and best practices followed by assessee’s group . Tribunal held that\u00a0 these services did not make available any technical knowledge, skill, know-how or processes to SurfGold\u00a0 Accordingly\u00a0\u00a0 Assessing Officer\u00a0 as well as DRP was not justified in holding management services to be fees for technical services . \u00a0Referral services\/other services were provided by assessee Singapore company to support Indian company Surf Gold in carrying on business . These services did not make available any technical knowledge, skill, know-how or processes to SurfGold because there was no transmission of technical knowledge, experience, skill etc. from assessee to SurfGold or its clients . Tribunal held that\u00a0 revenue received under referral agreement was not taxable in hands of assessee as royalty under Act and\/or India-Singapore DTAA or FTS under India-Singapore DTAA .\u00a0 (AY. 2010 -11, to 2012 -13 )<\/p>\n
\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S. 9(1)(vi) : Income deemed to accrue or arise in India \u2013 Web hosting services – Royalty \u2013 Providing IDC service to its Indian group companies from Singapore – Mail box\/website hosting services- Not assessable as royalty- Management fess \u2013 Not assessable as fees for technical services – Fees for management services is not assessable as fees for technical services -Referral services\/other services – Revenue received under referral agreement was not taxable as royalty under Act DTAA -India \u2013 Singapore [ S. 9(1)(vii), 90, Art 12 ] .<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-19256","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-50A","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/19256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=19256"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/19256\/revisions"}],"predecessor-version":[{"id":19257,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/19256\/revisions\/19257"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=19256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=19256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=19256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}