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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI N. V. VASUDEVAN & SHRI CHANDRA POOJARI
per valuation a sum of Rs.14.7 Crores together with Rs.55 Crores of debenture money less Rs.12 Crores paid to Assessee by way of slump sale. The law is settled that if the Revenue finds that in an transaction an entity which has no commercial/business substance has been interposed only to avoid tax”, then in such cases the Revenue would be entitled to ignore the separate legal identity or interposition of that entity, to look at the holding company as having directly done the transaction. In so far as the Assessee is concerned, the statutory provisions do not provide for any tax implications. The affairs have been arranged in such a way that there is tax advantage to the Assessee. The transaction of sale of shares of Aigua Sprinkler to Mr.Gitendra Bhanot will be ignored, by lifting the corporate veil and by construing the sale of sprinkler business by the Assessee to Mr.Gitendra Bhanot. Loss on sale of shares to exploit a loophole in the law, has been plugged by way of amendment from AY 18-19 by introduction of Sec.50CA of the Act. We do not wish to go into the tax implications in the hands of Mr.Gitendra Bhanot and whatever is the observations in this appeal is restricted to the tax implications in the hands of the Assessee. Therefore the better course of action would be to ignore the transaction of sale of shares as superfluous and entered into with a view to gain tax advantage. In that view of the matter, the short term capital loss would be nil, in the facts and circumstances of the present case. In the light of the above discussion, we reject the prayer of the Assessee to allow the short term capital loss on sale of shares as claimed by the Assessee and hold that the transaction of sale of shares deserves to be ignored and no loss can be determined nor can any short term gain be taxed. Thus the grounds relating to short term loss/gain on sale of shares are treated as partly allowed.
Ground No.23 and 24 relate to disallowance under Section 40(a)(ia) of the Act of INR 18,723,021 on account of non-deduction of TDS on payment of management fees. These grounds read as follows:
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
erred in disallowing payment of management fees amounting to INR 17,691,705 to Tyco International Limited under section 40(a)(i) of the Act without appreciating the fact that the Applicant is not required to withhold taxes on these payments as per the provisions of the Act read with India- Switzerland Treaty read with India-US Treaty . 24. erred in disallowing payment of management fees amounting to INR 1,031,316 to Tyco International Asia, Inc. under section 40(a)(i) of the Act without appreciating the fact that the Applicant is not required to withhold taxes on these payments as per the provisions of the Act read with India- Singapore Treaty.
The Assessee entered into inter-company services agreement with Tyco International Management Company LLC, USA (“TIMCO”) ( pages 2870 to 2889 of supplementary paperbook dated July 18, 2022) and Tyco International Asia, Inc., Singapore to receive certain management services. In relation to the services rendered by TIMCO, the Assessee remunerates Tyco International Limited, Switzerland (“TIL, Switzerland”) which is appointed as a billing & collection agent by TIMCO, wherein TIMCO is beneficial owner of the income received from the Assessee for the management services rendered. 50% of the payment towards management support services received from TIMCO accrued in the books of the Assessee during FY 2014-15 and the balance 50% (i.e. INR 1,76,91,705) was considered in FY 2015-16 in the books of the Assessee. The Assessee made a similar payment for management services received from Tyco International Asia, Inc., Singapore of a sum of INR 1,031,316. The payments made by the Assessee to TIL, Switzerland and Tyco International Asia Inc., Singapore in all totaling a sum of Rs.1,87,23,021 was disallowed by the AO for the reason that the Assessee did not deduct tax at source on the aforesaid payments as required u/s.195 of the Act and therefore the said sum claimed as deduction was to be disallowed as per the provisions of Sec.40(a)(i) of the Act for non-deduction of tax at source. The AO has wrongly referred to Tyco Fire and Security GmbH instead of referring to TIL, Switzerland. According to the AO, the sums paid to the aforesaid non-
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residents were in the nature of Fees for Technical Services (FTS) and was chargeable to tax in India as per the provisions of Sec.9(1)(vii) of the Act.
Before the Dispute Resolution Panel (DRP), the Assessee gave a description of the nature of services rendered by the non-residents Tyco International Management Co. USA (TIMCO) and Tyco International Asia, Inc., Singapore Tyco Asia, Inc., Singapore. The same is given as an annexure to this order. It was contended by the Assessee that the payment to the non-residents was for services provided by the AEs which are in the nature of management services namely, marketing and product development advisory services; fire and security global account sales support services; information technology support services; financial support services; human resource services; six sigma services and supply chain & real-estate services. It was contended under the Act, tax withholding provisions are attracted in relation to payments to non-residents only if the income is chargeable to tax in India. Since the payees were tax residents of countries with which India has Treaty for Avoidance of Double Taxation (DTAA), the taxability of the payment in the hands of the non-residents in India has to be determined having regard to the provisions of section 90(2) of the Act, which lays down that tax incidence on a non-resident would be governed by the provisions of the Act or the relevant DTAA, whichever is more beneficial.
It was contended that having regard to the nature of services, these could at best be managerial or consultancy services and hence could be characterised as Fees for technical services (“FTS”) / Fees for included services (“FIS”) as per the provisions of the Act but cannot be taxed in India as per the applicable DTAA. In this regard, the Assessee pointed out that the sum of Rs.1,76,91,705/- paid to TIMCO had to be judged in the light of the provisions of the India-USA DTAA because TIMCO was a tax resident of USA. The payments were made for
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managerial services to TIL, Switzerland as they were appointed as a billing and collection agent by TIMCO for management services rendered to the Assessee. Accordingly, TIL, Switzerland was only a ‘flow through’ entity and would be deemed to be acting on behalf of TIMCO and accordingly the effect would be as if the Assessee has directly engaged with TIMCO.
In so far as the payment of management fee amounting to Rs.10,31,316/- to Tyco International Asia Inc., Singapore is concerned, the Assessee submitted that the said payee was tax resident of Singapore and therefore the taxability of the payment in India has to be determined having regard to the provisions of the DTAA between India and Singapore.
The non-residents to whom the Assessee paid management fees and the applicable DTAA’s with reference to them were thus as follows:
Country of Name of AE Applicable DTAA residence India - Singapore Tyco International Asia Inc. Singapore DTAA TIMCO US India - US DTAA
As per the provisions of India-Singapore and India-US DTAA, the term of fees for technical services / included services is defined as any consideration for rendering of any managerial, technical or consultancy service only where the services make available technical knowledge, experience, skill, know-how or processes, which enables the person acquiring the services to apply the technology contained therein. The relevant extracts of Article 12(4) of India–US DTAA and India–Singapore DTAA is as follows:
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Definition of fees for included services as provided under Article 12(4) of India – US DTAA “4. For purposes of this Article, "fees for included services" means payments of any kind to any person in consideration for the rendering of any technical or consultancy services (including through the provision of services of technical or other personnel) if such services : (a) ………; or (b) make available technical knowledge, experience, skill, know-how, or processes, or consist of the development and transfer of a technical plan or technical design.” (Emphasis supplied) Definition of fees for technical services as provided under Article 12(4) of India – Singapore DTAA “4. The term "fees for technical services" as used in this Article means payments of any kind to any person in consideration for services of a managerial, technical or consultancy nature (including the provision of such services through technical or other personnel) if such services : (a) ……. ; or (b) make available technical knowledge, experience, skill, know-how or processes, which enables the person acquiring the services to apply the technology contained therein ; or” (Emphasis supplied) It was submitted that for the management services rendered by the AEs to be construed as FIS / FTS under India-US DTAA and of India-Singapore DTAA, respectively, the services should among others make available technical knowledge, experience, skill, know-how or processes, which enable the personnel of the Assessee acquiring the services to apply the technology contained therein. Hence, as the management services rendered by the AEs and do not “transfer” / “make available” any technical knowledge, skills, know-how, etc., to the Assessee, which could be independently applied by the Assessee, and such services would not qualify as “Fees for included services / Fees for technical services” as defined
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under Article 12(4) of India-US DTAA and Article 12(4) of India-Singapore DTAA, respectively.
Attention was drawn to the Memorandum of Understanding entered into between India and US explaining the term “make available” as follows: Technology will be considered as “made available” when the person acquiring the services is enabled to apply the technology. The fact that the provision of services may require technical input by the person does not per se mean that technical knowledge skill, etc. are “made available” to the person utilizing the service. Similarly, the use of a product that embodies technology shall not per se be considered to make the technology available.
It was submitted that in the assessment order passed by the Deputy Commissioner of Income Tax – 10(2), Mumbai under section 143(3) read with section 263 dated December 28, 2010 for AY 2005-06 in the Assessee’s own case wherein it was held that management fee is not subject to tax as per the provisions of India – Singapore DTAA. Further reliance was placed on the following judicial rulings: The Special Bench of the Hon’ble Mumbai Tribunal in the case of Mahindra & Mahindra Ltd (313 ITR 263) observed that “make available” means to provide something to one, which is capable of use by the other. Such use may be for once only or on a continuous basis. To make available means that such technical information or advice is transmitted to the recipient, which remains at his / its disposal for taking the benefit therefrom by use. Even the use of such technical services by the recipient for once will satisfy the test of “making available”. The Honorable jurisdictional Karnataka High Court in the case of CIT vs De Beers India Minerals Private Limited (ITA 549 of 2007) has also interpreted the meaning of the term “make available” and observed that: “The service should be aimed at and result in transmitting technical knowledge etc. so that the payer of the service could
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derive an enduring benefit and utilize the knowledge or know how on his own in future without the aid of the service provider. In other words, to fit into the terminology “making available”, the technical knowledge, skills etc. must remain with the person receiving the services even after the particular contract comes to an end. It is not enough that the services offered are the product of intense technological effort and a lot of technical knowledge and experience of the service provider have gone into it. The technical knowledge or skills of the provider should be imparted to and absorbed by the receiver so that the receiver can deploy similar technology or techniques in the future without depending upon the service provider...payment of consideration would be regarded as FIS only if the twin test of rendering services and making technical knowledge available at the same time is satisfied.” (Emphasis supplied) Relying on the above judgment, the Hon’ble Karnataka High Court in the case of Director of Income-tax (International taxation) vs Sun Micro Systems India Private Limited (ITA no. 35/2010) held that “it is clear that Sun Singapore has not made available to the assessee the technology or the technological services which is required to provide the distribution, management and logistic services. When once factually it is held that the technical services has not been made available, then in view of the law declared in the Judgment of De Beers India Minerals Pvt Ltd (supra), there is no liability to deduct tax at source. The AAR ruling of Intertek Testing Services India Private Ltd (307 ITR 418) in relation to ‘make available’ concept states that service should be aimed at and result in transmitting the technical knowledge, etc., so that the payer of service could derive an enduring benefit and utilize the knowledge or know-how in future on his own without the aid of the service provider. The Hon’ble Mumbai ITAT in case of Raymond Limited vs. DCIT (86 ITD 791) held that the requirement of “make available” in the tax treaty is met if the technology, knowledge or expertise can be applied independently by the person who obtained the services, without recourse to the service provider. The Hon’ble Bangalore ITAT in the case of IRunway India (P.) Ltd. (IT(TP) A NO. 229 / BANG / 2019) for AY 2015-16 dated April 27, 2022, having regard to the fact that the services provided by iRunaway Inc., did not make available any technical knowledge to the
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assessee, held that the same cannot be regarded as taxable in India. Consequently, there was no obligation on the part of the assessee to deduct tax at source at the time of making payment. Hence, the ITAT ordered that the disallowance made under section 40(a)(i) cannot be sustained and directed that the same be deleted. 63. It was submitted that given the nature of the management services provided by TIMCO and Tyco International Asia, Inc. to the Assessee, the services would not qualify as FTS / FIS as defined under Article 12(4) of India-US DTAA and India-Singapore DTAA respectively. Accordingly, such payments are not liable to tax in the hands of TIMCO / Tyco International Asia, Inc. in India and consequently the Assessee is not required to withhold any tax on these payments and no disallowance can be made u/s.40(a)(i) of the Act.
Alternatively, it was submitted that if payment made to TIMCO is regarded as payment made to TIL Switzerland, then the applicable DTAA would be India- Switzerland DTAA and in terms of the Most Favoured National Clause (MFN Clause) in the said DTAA, the restricted scope of taxation under more than one DTAA for definition of FTS is available to be adopted. Accordingly the restricted scope of FTS as provided in India-UK DTAA can be applied in India Switzerland DTAA by virtue of MFN clause. Thus, the payment made by the Assessee to TIL, Switzerland for management services rendered by TIMCO is not taxable as FTS in India as nothing was made available to the Assessee by virtue of those services.
The arguments advanced before the DRP did not find acceptance by the DRP. The DRP, in so far as payment to TIMCO is concerned, observed that the Assessee deducted TDS on similar payments from 17.11.2014 and therefore all arguments raised by the Assessee were rejected. It was the argument of the Assessee before DRP that the sum of Rs.1,76,91,705/- paid to TIMCO had to be judged in the light of the provisions of the India-USA DTAA because TIMCO was a tax resident of USA, though the payments were made for managerial services to
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TIL, Switzerland as they were appointed as a billing and collection agent by TIMCO for management services rendered to the Assessee. It was the contention of the Assessee that TIL, Switzerland was only a ‘flow through’ entity and it was only TIMCO which was the beneficial owner of the income from managerial fees received from the Assessee and therefore would be deemed to be acting on behalf of TIMCO and accordingly the effect would be as if the Assessee has directly engaged with TIMCO. On the above argument, the DRP held that the argument cannot be accepted but no reasons whatsoever was given by the DRP. The DRP thereafter held that the applicable DTAA would be India-Switzerland DTAA. The alternative argument of the Assessee was that if India-Switzerland DTAA is to be considered as applicable, then in terms of the Most Favoured National Clause (MFN Clause) in the said DTAA, the restricted scope of taxation under more than one DTAA for definition of FTS is available to be adopted. Accordingly the restricted scope of FTS as provided in India-UK DTAA can be applied in India Switzerland DTAA by virtue of MFN clause. On this alternate argument, the DRP held that by way of protocol dated 27.12.2011 MFN clause was introduced in the India-Switzerland DTAA and that protocol says that any convention entered into by India after 27.12.2011 containing a more restricted scope of the term FTS/FIS alone can be taken advantage of. The DRP held that the India-UK DTAA was entered into on 11.2.1994 much prior to the protocol to India-Switzerland DTAA and therefore the restricted scope of the term FTS/FIS as contained in India-UK DTAA cannot be adopted while interpreting India-Switzerland DTAA.
In so far as payments made to Tyco International Asia Inc. Singapore is concerned, the DRP held there is a description error of in the books of the Assessee and therefore the payment in question cannot be regarded as payment of management fee, hence the same was taxable in India.
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Aggrieved by the order of the DRP, the Assessee has raised Grd.No.23 & 24 before the Tribunal. We have heard the rival submissions. The learned counsel for Assessee reiterated submissions made before the DRP. The learned DR relied on the order of the DRP.
We have carefully considered the rival submissions. The first aspect that needs to be clarified is on the question of applicable DTAA in so far as the payment made to TIMCO is concerned. TIMCO is the person with whom the Assessee entered into Agreement for providing managerial services. TIMCO nominated TIL Switzerland as billing and collecting agent and directed the payment to be made for management services to the agent. TIMCO is the beneficial owner of the payment and therefore taxability of the payment in India has to be considered in the hands of TIMCO and not TIL Switzerland. Therefore the applicable DTAA would only be India-USA DTAA and not India-Switzerland DTAA. The findings of the DRP on the MFN clause on India-Switzerland DTAA are therefore in our view superfluous. In so far as the payment made to Tyco International Asia, Inc. Singapore is concerned, it was not the case of the AO that the services rendered were not in the nature of managerial services. The DRP has given findings on its own without confronting to the Assessee as to the alleged discrepancy which it had noticed. The findings of the DRP in this regard is therefore held to be unsustainable. We have to therefore proceed to analyse the taxability of the payments towards management fees in the hands of the payee under the India-USA DTAA and India-Singapore DTAA.
We shall first take up for consideration argument of the assessee that the sum paid by the assessee to TIMCO and TIL Switzerland cannot be brought to tax in India even assuming that the nature of the payment was FTS within the meaning of the Act because under the Indo US Treaty and India-Singapore DTAA, FTS is taxable in India only when the recipient of the payment 'makes available'
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
technical knowledge, experience, skill, know-how or processes, or consist of the development and transfer of a technical plan or technical design. The details of the services rendered by the non-residents are given in the annexure to this order. The services so provided were (a) legal & tax compliance services (b) Communication Support Services; (c) Information Technology support services; (d) internal audit services; (e) Marketing strategy and business development advisory services; (f) Human resource services; (g) Mergers and acquisition services; (h) Operation excellence servies and (i) Facility management services; In short it was in the nature of services of managerial in nature.
The relevant articles in the treaty between India and USA are is Article 12 which deals with taxability of Royalties and fees for included services. In terms of Article 12(1) . The same are the wordings in India-Singapore DTAA also. The discussion with regard to India-USA DTAA would therefore be applicable for payment made to Tyco International Asis Inc. Singapore. Royalties and fees for included services arising in a Contracting State (USA in this case) and paid to a resident of the other contracting State (India/Assessee in this case) may be taxed in that other state (i.e., USA). The relevant clause on which reliance was placed by the assessee for non taxability of the sum in question in India in the hands of iRunway Inc. USA was Article 12(4) which provides as follows:
“(4) For the purposes of this article 'fees for included services' means payments of any kind to any person in consideration for the rendering of any technical or consultancy services (including through the provisions of services of technical or other personnel) if such services : a) are ancillary and subsidiary to the application or enjoyment of the right, property or information for which a payment described in para 3 is received; or b) make available technical knowledge, experience, skill, know-how or processes, or consist of the development and transfer of a technical plan or technical design.” 71. The case of the assessee is that in terms of Article 12(4)(b) of the Indo US treaty, which is applicable to the present case, only rendering of technical or
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consultancy services as 'make available' technical knowledge, experience, skill or know-how etc can be taxed in India in the hands of iRunway Inc. In other words, in order to attract the taxability of an income under Article 12(4)(b), not only the payment should be in consideration for rendering of technical or consultancy services, but in addition to the payment being consideration for rendering of technical services., the services so rendered should also be such that 'make available' technical knowledge, experience, skill, know-how, or processes, or consist of the development and transfer of a technical plan or technical design.
These worlds are 'which make available'. The meaning of the expression make available were considered by the Tribunal in the case of Raymond Ltd. Vs. DCIT (2003) 80 TTJ (Mum) 120. The Tribunal after elaborate analysis of all the related aspects observed that :-
"The words 'making available' in Article 13.4 refers to the stage subsequent to the 'making use of' stage. The qualifying words is 'which' the use of this relative pronoun as a conjunction is to denote some additional function the 'rendering the services' must fulfil. And that is that it should also 'make available' technical knowledge, experience, skill etc. The word which occurring in the article after the word 'services' and before the words 'make available' not only ITA No.229/Bang/2019 described or defines more clearly the antecedent noun '(services') but also gives additional information about the same in the sense that it requires that the services should result in making available to the user technical knowledge, experience, skill, etc. Thus, the normal, plain and grammatical meaning of the language employed is that a mere rendering of services is not roped in unless the person utilizing the services is able to make use of the technical knowledge, etc. by himself in his business or for his own benefit and without recourse to the performer of the services in future. The technical knowledge, experience, skill etc. must remain with the person utilizing the services even after the rendering of the services has come to an end. A transmission of the technical knowledge, experience, skill, etc. from the person rendering services to the person utilizing the same is contemplated by the article. Some sort of durability or permanency of the result of the 'rendering services' is envisaged which will remain at the disposal of the person utilizing the services. The fruits of the services should remain available to the person utilizing the services in some concrete shape such as technical knowledge, experience skill etc.
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In Raymond's case (supra), the Tribunal also held that rendering of technical services cannot be equated with making available the technical services. In the case of CESC Ltd. Vs. DCIT (2003) 80 TTJ (Cal) (TM) 806: (2003) 87 ITD 653 (Cal)(TM) also the question regarding the scope of expression making available came up for the consideration of the Tribunal. In that case, the Tribunal was dealing with the scope of Article 13(4)(c) of the Indo-UK tax treaty which is admittedly in pari materia with Article 12(4) of the India-USA tax treaty with which we are presently concerned. The majority view was that in order to attract the provisions of the said article of the tax treaty, not only the services should be technical in nature but should be such as to result in making the technology available to person receiving the technical services in question. The Tribunal also referred to with approval the extracts from protocol to the Indo-US tax treaty to the effect that 'generally speaking, technology will be considered made available, when the person acquiring the service is enabled to apply the technology.
Honorable jurisdictional Karnataka High Court in the case of CIT vs De Beers India Minerals Private Limited (ITA 549 of 2007) has also interpreted the meaning of the term “make available” and observed that: “The service should be aimed at and result in transmitting technical knowledge etc. so that the payer of the service could derive an enduring benefit and utilize the knowledge or know how on his own in future without the aid of the service provider. In other words, to fit into the terminology “making available”, the technical knowledge, skills etc. must remain with the person receiving the services even after the particular contract comes to an end. It is not enough that the services offered are the product of intense technological effort and a lot of technical knowledge and experience of the service provider have gone into it. The technical knowledge or skills of the provider should be imparted to and absorbed by the receiver so that the receiver can deploy similar technology or techniques in the future without depending upon the service provider...payment of consideration would be regarded as FIS only if the twin test of rendering services and making technical knowledge available at the same time is satisfied.”
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
It is not even the allegation of the revenue that the non-residents had made available to the assessee, the knowledge generated in the course of rendering managerial services. In our view the services rendered were purely managerial services and by no stretch of imagination can be considered as making available any technical knowledge, experience, skill, know-how or processes, to the assessee. In view of the fact that the services provided by non-residents, did not make available any technical knowledge, experience, skill, know-how or processes to the assessee, the same cannot be regarded as taxable in India. Consequently, there was no obligation on the part of the assessee to deduct tax at source at the time of making payment. Hence, the disallowance made u/s 40(a)(ai) of the Act cannot be sustained and is directed to be deleted.
In the result, the appeal of the Assessee is partly allowed.
Sd/- Sd/- (CHANDRA POOJARI) (N.V. VASUDEVAN) Accountant Member Vice President Bangalore, Dated: 28.11.2022. /NS/* Copy to: 1. Assessees 2. Respondent 3. CIT 4. CIT(A) 5. DR 6. Guard file By order
Assistant Registrar, ITAT, Bangalore.
ANNEXURE: Details of management services provided by TIL and TIP to TFSIPL during the FY 2015-16 Supporting evidence Sl. Mode of Benefits derived by Description of No Brief note on the type of services received receipt of TFSIPL from receipt (submitted on a sample services . services of services basis) Email evidencing webinar 1. Legal & Tax Assistance in tax compliance with Emails & TFSIPL obtained compliance various tax laws and customs regulations; phone guidance on overall conducted in relation to services conferences legal and tax Tax provisioning and Design policy for dealing with third- framework and policy process guidance provided parties, particularly where an agent or as formulated at a by Central Tax team distributor may be involved, establishes group level. (Refer Annexure 5.1.1) guidelines for selecting and monitoring Email evidencing external professional service providers, TFSIPL also obtained and provides training for employees; teleconference set-up to assistance and inputs to provide inputs in India enable it to adhere to Manages the litigation issues on behalf Tax issues under the global approach to of its entities and also engages outside Litigation and compliance be followed by Tyco legal counsel to track worldwide legal (Refer Annexure 5.1.2) group in negotiating expenses; contracts with agents / Email evidencing Assistance in various tax related distributors. exchange of updates matters to its affiliates by way of tax regarding India Indirect planning and compliance; and Tax and setting up Undertakes review of tax issues and meetings and management of foreign tax audits, tax teleconferences for accounting and reporting support tackling issues under services, tax planning and guidance on Indirect Tax Litigation various types of transactions undertaken (Refer Annexure 5.1.3)
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
Supporting evidence Sl. Mode of Benefits derived by Description of No Brief note on the type of services received receipt of TFSIPL from receipt (submitted on a sample services . services of services basis) by the entities of the Group etc. Email evidencing invitation for webinars and meetings conducted in relation to guidance provided for legal matters including environment safety, public affairs, billing management etc.
TFSIPL has received 2. Marketing Assistance in the design and Teleconferen TFSIPL has obtained strategy and development of marketing strategies for ces & guidance in relation to marketing strategy and business development of new products and meetings better servicing of business development development markets; existing clients, better advisory services either advisory understanding of through in-person Assistance in the design and services market trends. meetings, periodic calls. implementation of advertisement and TFSIPL was also promotion materials which are in line provided a platform for with the Tyco trademark’s positioning; exchange of Organisation and participation in information with seminars, conferences and exhibitions for various industrial and the benefit of TFSIPL, printing of trade associations. catalogues; Apart from various
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
Supporting evidence Sl. Mode of Benefits derived by Description of No Brief note on the type of services received receipt of TFSIPL from receipt (submitted on a sample services . services of services basis) Advice, assistance & training on meetings and discussions held marketing techniques such as market throughout the year, surveys, market analysis & evaluation, TFSIPL was provided marketing communications, with useful insights on identifications of new market trends, the market trends in definition of sales policy, collection and India. dissemination of marketing information; and Methods for identification of potential new markets and prospects. In this regard, wish to 3. Communication Emails & Communication Managing and co-ordinating internal support services phone services has assisted communications (e.g. internal messaging highlight that TFSIPL’s conferences TFSIPL in integrating applications like Yammer) and external employees generally log a the communication communications (e.g. newsletters, video IT ticket in the system to lines within the group communications and Tyco portal) resolve any as well as external communication issue and Design and develop best practices for communications which the ticket is assigned to communication tools and platforms helps in ease of the central which would be used by TFSIPL in communication with communications team communicating with its employees, the employees and which looks into the issue external customers, vendors and public external customers and and resolves the same. relations program vendors, and for public relations programs.
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
Supporting evidence Sl. Mode of Benefits derived by Description of No Brief note on the type of services received receipt of TFSIPL from receipt (submitted on a sample services . services of services basis) 4. Information Emails & TFSIPL obtained In this regard, wish to Defining the global strategy for the technology phone assistance with information systems; highlight that TFSIPL’s support services conferences formulating standard employees generally log a Coordinating & assisting in policies and processes IT ticket in the system to implementation of well-adapted, in relation to IT resolve any IT issue and standardised and secured IT and information systems. the ticket is assigned to telecommunication solutions; the central IT team which TFSIPL also obtained Definition & coordination of the office looks into the issue and assistance in the automation policy; resolves the same. implementation and supervision of common Management and supervision of IT applications. common IT applications; and Optimising the information flows in implementing a standard ERP and providing IT and information systems tools. Email evidencing audit 5. Internal audit Emails, TFSIPL obtained Develops and executes internal audit services meetings & assistance with practice to be adopted by Tyco Group support received from phone formulating internal entities; Central Audit team on conferences audit control procedure. VAT assessment, Periodically visits Tyco locations to compliances, accounts assess controls, and make reconciliation. recommendations to improve controls and processes in place at every location.
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
Supporting evidence Sl. Mode of Benefits derived by Description of No Brief note on the type of services received receipt of TFSIPL from receipt (submitted on a sample services . services of services basis) 6. Human resource Emails, TFSIPL obtained TFSIPL generally receives Coordination of TFSIPL’s resources services presentations, assistance with policies; advice, training, assistance meetings & formulating standard from HR team via in- Advice on recruitment strategies, phone policies and processes person meetings / wages, salaries; conferences in relation to teleconferences. compensation & Establishment of appraisal policies; benefits; minimum Coordination and assistance on criteria for recruiting training activities; training of personnel; performance management staff and technicians; evaluation; training & development etc. Coordination of secondments; Recruitment of top level managers, advice on selection of and assistance in recruiting top level employees; Assistance in individual career planning for group executives; and Advice and coordination of insurance and incentive benefits programs. 7. Mergers and Emails, TFSIPL has benefitted TFSIPL generally receives Provides guidance to Tyco entities acquisition meetings & from the review regarding its acquisitions and review comments / inputs services phone comments / inputs divestitures; from M&A team via in- conferences provided by TIL’s and person meetings / Provide inputs on large and complex TIP’s M&A team in the
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
Supporting evidence Sl. Mode of Benefits derived by Description of No Brief note on the type of services received receipt of TFSIPL from receipt (submitted on a sample services . services of services basis) transactions that require specialised divesture of its teleconferences. expertise. Sprinkler business division during the leads the execution of merger / year. divesture deals (structuring, negotiations, etc.), closing of the deals and meeting with senior management and banks. 8. Operational Emails, TFSIPL was assisted in Email evidencing policy Develops operating excellence excellence meetings & developing its program which has enables TFSIPL to intimations received from services phone strategies and growth improve working capital including the . conferences plan in line with group inventory improvements and increasing TFSIPL also receives strategies, master customer satisfaction; inputs and training from plans. Provides training and examination the team via in-person materials to help improve the various meetings / teleconferences For example: The operational process group senior management provided Obtains government registrations and various directions and certifications relating to import and advice on the running export control, putting in place the tools, and general processes and people to ensure Tyco’s management of the trade compliance, conducting business through audits/assessments of compliance emails and periodic performance at businesses, determining calls. risk profiles for businesses and developing actions to address any
IT(TP) A No. 270/Bang/2021 Tyco Fire and Security India Pvt.Ltd.
Supporting evidence Sl. Mode of Benefits derived by Description of No Brief note on the type of services received receipt of TFSIPL from receipt (submitted on a sample services . services of services basis) identified gap areas, and developing and deploying specific trade compliance training materials. 9. Facility Emails and TFSIPL has benefitted TFSIPL receives inputs Provides assistance in managing real- management teleconferenc from the negotiation estate footprints Tyco affiliates and from the team via in- services es inputs provided TIL’s develops best practices on real estate person meetings / and TIP’s team for selection and lease negotiation. teleconferences finalising additional office space / lease renewal discussions