During relevant year, assessee paid charges for flight simulator usage and other flight training to cockpit crew and pilots. The AO held that payment of simulator fee amounted to royalty as per Explanation-2 clause (iv) and (iva) of section 9(1) and as per article 12(3) of DTAA between India and UAE \u00a0hence liable to deduct tax at source . CIT (A) affirmed the order of the AO . On appeal Tribunal held that \u00a0mere fact that charges for use of simulator was separately quantified on hourly basis did not mean that assessee was hiring same or making payment for a right to use same, \u00a0even otherwise, since without imparting of training by instructors, hiring of simulator on its own did not have any purpose, it could not be concluded that assesse paid royalty for use of simulator. Order of the AO is set aside . (AY. 2008 -09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services \u2013 Charges for flight simulator usage and other flight training to cockpit crew and pilots- Not liable to deduct tax at source – DTAA- India-UAE [ S. 9(1)(vi) 195 , Art .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":[1],"tags":[],"class_list":["post-9084","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2mw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9084","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=9084"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9084\/revisions"}],"predecessor-version":[{"id":9085,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9084\/revisions\/9085"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=9084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=9084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=9084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}