The assessee, a Singapore tax resident, received management fees from its Indian subsidiary. The Assessing Officer treated the receipts as Fees for Technical Services under Article 12(4)(b) of the India-Singapore DTAA. The Tribunal held that the Department failed to establish that the assessee had made available any technical knowledge, experience, skill or know-how enabling the Indian subsidiary to perform the services independently. Mere rendering of managerial services did not satisfy the “make available” condition. Accordingly, the receipts were held not taxable in India as Fees for Technical Services. The assessee received consideration for sale of software licences to an Indian bank. The Tribunal held that the licence agreement merely granted a non-exclusive, non-transferable right to install and use the software and did not involve rendering of any technical or consultancy services. Since the receipts represented consideration for sale of software licences and not for rendering services, they could not be characterised as Fees for Technical Services. The addition was accordingly deleted.\u00a0\u00a0 (AY. 2019-20).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii): Income deemed to accrue or arise in India-Fees for technical services-Non-resident-India-Singapore DTAA-Management services-“Make available” test not satisfied-Receipts not taxable as Fees for Technical Services-Sale of software licences – Licence agreement transferring only right to use software-No services rendered-Receipts not taxable as Fees for Technical Services. DTAA [-India-Singapore [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_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-63584","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gxy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63584","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=63584"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63584\/revisions"}],"predecessor-version":[{"id":63585,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63584\/revisions\/63585"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}