DEPUTY COMMISSIONER OF INCOME TAX(INTERNATIONAL TAXATION) CIRCLE-2(2) BENGALURU, BANGALORE vs. U L INDIA PRIVATE LIMITED, BANGALORE

ITA 29/BANG/2024Status: DisposedITAT Bangalore03 March 2025AY 2012-13Bench: SHRI WASEEM AHMED (Accountant Member), SHRI PRAKASH CHAND YADAV (Judicial Member)4 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the issue of whether testing charges constituted FTS or royalty required further examination by the Assessing Officer (AO). Similarly, the taxability of management fees was restored to the AO for fresh consideration, particularly regarding the plea of reimbursement of global costs. The revenue's appeal concerning software payments was dismissed on grounds of consistency.

What were the facts?

The appeals concerned the taxability of testing charges, management fees, and software payments made by Indian entities to their foreign group entities. The revenue authorities treated these payments as Fees for Technical Services (FTS) or royalty, requiring withholding tax.

What were the issues?

Whether payments for testing and management services qualify as Fees for Technical Services (FTS) under tax treaties, and whether software payments constitute royalty.

Which sections of the Income-tax Act were involved?

Section 195,Section 201(1),Section 201(1A)

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Heard together (2 matters)

ITA No.1136/Bang/2023
ITA No.29/Bang/2024

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UL LLC, US UL India Private Limited, Bangalore Underwriters Laboratories Inc., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE

BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER Assessment Year: 2012-13

UL LLC 333, Pfingsten Road, Northbook, ACIT (International Taxation) United States of America Circle-2(2) PAN NO : AABCU9700F APPELLANT RESPONDENT Assessment Year: 2012-13 Circle-2(2) Bengaluru 560 066 Bangalore Karnataka

PAN NO : AAACU2468F APPELLANT RESPONDENT UL LLC, US UL India Private Limited, Bangalore Underwriters Laboratories Inc., Bangalore Assessment Year: 2012-13

UL India Private Limited DCIT (Internatio

The order continues below.

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