Assessee, a Singapore based company, which is\u00a0 engaged in business of providing\/sublicensing software to entities in financial service sector and also provided maintenance, support and training services Assessee received fees towards maintenance, other support and training services provided to its Indian customers.\u00a0 Assessee claimed that it did not have any permanent establishment (PE) in India and, thus, said receipts could not be taxed in India.\u00a0 Assessing Officer held that assessee had made available technical knowledge, know-how, skill etc. to service recipient and, thus, fees received would qualify as FTS under article 12(4)(b) of DTAA as well as section 9(1)(vii). DRP up held the order of the AO. On appeal the Tribunal held that\u00a0 the\u00a0 assessee was providing identical nature of services year on year basis and had not made available technical knowledge, know-how, skill etc. to service recipient.Since assessee did not have any PE in India, fees received by it for providing maintenance, support and training services could not be taxed in India.As regards\u00a0 additional services related to implementation and migration of software to its Indian customers \u00a0is business receipts as there is\u00a0 no PE in India\u00a0 the receipt is not taxable.(AY. 2019-20, 2021-22)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services-Make available-Provided\/sublicensed software to entities in financial service sector and also provided maintenance, support and training services and received fees towards same-No PE in India-Recipient, fees received by assessee could not be taxed in India-Additional services related to implementation and migration of software to its Indian customers-Business receipts-No PE in India-Not taxable-DTAA-India-Singapore. [S.9(1)(i), 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-55251","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-en9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55251","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=55251"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55251\/revisions"}],"predecessor-version":[{"id":55252,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55251\/revisions\/55252"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}