Assessee, a German company, which is engaged in business of supply of plant, equipment, drawings and rendering of technical services to customers in metallurgical sector.\u00a0 During year under consideration, assessee entered into various contracts with Indian clients for supply of drawings and designs in relation to plant from Germany and rendering of technical services. Assessee offered receipts from drawings and designs and technical services as fee for technical services’ (FTS) at rate of 10 per cent as per DTAA between India and Germany.\u00a0 Assessing Officer held that\u00a0 the assessee had not offered to tax receipts from one Indian company (JSPL).\u00a0 Accordingly, he proceeded to reopen assessment and brought to tax receipts from one Indian company at 10 per cent as FTS. On appeal following the order of the sister concern\u00a0 since provisions of royalties and FTS are similar in nature, Assessing Officer was to be directed to delete addition. As regards supervisory services\u00a0 the assessee following the\u00a0 contract competition method\u00a0 the issue is\u00a0 remanded to the Assessing Officer. (AY. 2005-06, 2014-15, to 2017-18)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Supply of drawings and designs-Not assessable as fees for technical services-Supervisory services-Contract competition method-Remanded to the Assessing Officer-DTAA-India-Germany. [S. 9(1)(vi, 147, Art. 7, 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-55249","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-en7","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55249","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=55249"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55249\/revisions"}],"predecessor-version":[{"id":55250,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55249\/revisions\/55250"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}