The assessee, a UK resident, provided electronic invoicing and related services through its proprietary e-platform\/software and granted only a limited, non-exclusive licence to its Indian affiliate to use the platform for availing such services. No right in the source code, technology, or intellectual property was transferred. The Delhi High Court held that for Article 13(4)(c) of the India-UK DTAA, mere rendering of technical services is insufficient unless the services \u201cmake available\u201d technical knowledge, experience, skill, know-how or process enabling the recipient to perform the services independently in future. The training provided was only to enable use\/promote the e-invoicing platform and did not transfer the underlying technology or know-how. Accordingly, the receipts were not \u201cfees for technical services\u201d under the DTAA; hence the treaty definition prevailed over section 9(1)(vii), and the receipts were not chargeable to tax in India. Tribunal and reassessment orders were set aside. (AY. 2016-17, 2017-18).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii): Income deemed to accrue or arise in India-Fees for technical services-E-invoicing services-Licence only to use platform\/software and not transfer of technology or IPR-Training for use of software did not \u201cmake available\u201d technical know-how-Under India-UK DTAA, treaty definition prevails over Act-Receipts not taxable as FTS. [S.144C(13), 147, 148, 260A, Art. 13(4)(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-58850","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fjc","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58850","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=58850"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58850\/revisions"}],"predecessor-version":[{"id":58851,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58850\/revisions\/58851"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=58850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=58850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=58850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}