Receipts earned by a US company from providing a cloud-native machine data analytics platform to Indian customers were held not taxable as fees for technical services under Article 12(4) of the India\u2013USA DTAA. The Tribunal held that the assessee neither made available any technical knowledge, experience or skill nor transferred technology to its customers. Once the assessee furnished a valid Tax Residency Certificate and offered the Indian-source income as business income in the USA, the fact that its global tax computation resulted in a loss was irrelevant. Accordingly, the receipts were not chargeable to tax in India as fees for technical services. (AY. 2021-22)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii): Income deemed to accrue or arise in India-Fees for technical services-Non-resident-Make available-Cloud-based software-Tax Residency Certificate-The receipts were not chargeable to tax in India as fees for technical services-DTAA-India-USA. [Art. 12(4)]<\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62379","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ge7","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62379","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=62379"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62379\/revisions"}],"predecessor-version":[{"id":62380,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62379\/revisions\/62380"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}