The Hon\u2019ble Tribunal held that the amounts received by the Assessee did not qualify to be FTS and hence, not taxable in India in the absence of a permanent establishment. While arriving at the said decision, the Tribunal took note of following points viz. (i) The term FTS under Article 13 of the India-Israel DTAA had a very wide scope. Further, w.r.t Article 12 and 13 of the India-Israel DTAA, the Protocol to the treaty contained the \u2018Most Favoured Nation\u2019 clause. Accordingly, the definition of the term FTS under India- Portugal and India-Canada DTAA were borrowed. In terms of the said DTAAs, the term FTS included \u2018make available\u2019 clause within its ambit; (ii) In the present case, the Assessee had not made available technical knowledge, experience, skill, knowhow etc. to NIIPL since such services were provided on a recurring basis; (iii) By applying the restricted meaning of FTS as per India-Portugal and India- Canada DTAAs, the amounts received by the Assessee from providing SAP and information technology support services were not in the nature of FTS. (AY. 2010-11, 2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services -Amounts received towards the provision of SAP & IT services on a recurring basis are not in the nature of FTS- Not taxable in India-DTAA-India -Israel [S.9(1)(i), Art. 13] <\/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-43564","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bkE","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43564","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=43564"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43564\/revisions"}],"predecessor-version":[{"id":45575,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43564\/revisions\/45575"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}