Assessee, running a school, made payments to two foreign universities\/institutions in connection with schools made payments included examination fees collected from students and fees for syllabus, setting up of question papers, training of teachers, etc. and assessee did not deduct TDS under section\u00a0195\u00a0of the Act.\u00a0 The assessing Officer held that skilled educational services were rendered by these foreign universities to the assessee and, therefore, such services fell in the ambit of the expression ‘FTS’. Said remittance to foreign universities was not from funds of assessee, but the fee was collected from students and directly remitted to foreign universities and no part of such receipt was retained by assessee, nor was any additional expenditure in that respect incurred by assessee. Held that the assessee was imparting instructions in India as per the syllabus set by foreign universities, and subsequently, foreign universities were conducting examinations before issuing degrees. Since Article 13(5)(c) of DTAA between India and UK and Article 12(5)(a) of DTAA between India and Switzerland clearly read that definition of \u2018fee for technical services\u2019 does not include any amount paid for teaching in or by educational institutions and expression \u2018teaching in or by educational institution\u2019 includes the activity of examinations also, the amount paid to two universities did not come under clutches of technical services or royalty services.\u00a0 (AY. 2012-13 to 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Foreign universities-Examination fees from students-Neither technical services or royalty services-Not liable to deduct tax at source-DTAA-India-UK-Switzerland. [S. 9(1)(vi), 195, Art. 12(5)(a), 13(5)(c)] <\/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-33766","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8MC","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33766","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=33766"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33766\/revisions"}],"predecessor-version":[{"id":33767,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/33766\/revisions\/33767"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=33766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=33766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=33766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}