Assessee paid software licensing fee to a US company. Assessing Officer held tht\u00a0 payment is\u00a0 in nature of fee for included services as per article 12(4)(b) of India-US DTAA and section 9(1)(vii). DRP affirmed the order of the AO. On appeal the Tribunal held that\u00a0 s only commercial information was transferred to end user and not technical knowledge as required under article 12(4)(b) to constitute fee for included services, said payment could not be taxed as fee for included services. \u00a0Tribunal also held that installation and integration services provided by assessee to US company were merely support services dealing with installation and integration and when primary services themselves were not taxable as FTS, these ancillary services qua primary services could not be taxed as FTS. (AY. 2021-22)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-commercial information is transferred to end user-Not taxable as fee for included services-Installation and integration services-Not taxable as fees for technical services-DTAA-India-USA[Art. 12(4)(b)] <\/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-51094","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-di6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51094","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=51094"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51094\/revisions"}],"predecessor-version":[{"id":51095,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51094\/revisions\/51095"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}