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“fees for technical services”

International TaxSection 9(1)(vii)Section 9(1)(vii)1,408 judgments

The decision most relied on for fees for technical services is Engineering Analysis Centre of Excellence (P) Ltd. v. CIT (432 ITR 471), cited in 914 judgments on BharatTax.

Leading authorities on fees for technical services

Engineering Analysis Centre of Excellence (P) Ltd. v. CIT
432 ITR 471 · 2021 · Supreme Court
914
citing judgments

Payments for the supply or use of computer software, where there is no transfer of copyright but only a right to use the copyrighted product, are generally considered business profits and not 'royalty' or 'fees for technical services' under the Income Tax Act, 1961 or relevant DTAAs. This principle also applies to transponder fees, which are not taxable as royalty.

CIT v. De Beers India Minerals (P.) Ltd.
346 ITR 467 · 2012 · High Court
371
citing judgments

For fees for technical or consultancy services to 'make available' technical knowledge or know-how under a DTAA, the service must transmit such knowledge, allowing the recipient to derive an enduring benefit and utilize it independently in the future.

DIT v. Nokia Networks OY
358 ITR 259 · 2013 · High Court
276
citing judgments

Payments for the supply of software along with telecom equipment are not in the nature of royalty if they are for the use of a copyrighted article, not the copyright itself. Such payments are not taxable in India in the absence of a Permanent Establishment (PE).

DIT v. Infrasoft Ltd.
39 Taxmann.com 88 · 2013 · High Court
269
citing judgments

Payments for the use of copyrighted software, without the transfer of any rights in the underlying copyright itself, do not constitute 'royalty' under the Income-tax Act or tax treaties. Such payments are often treated as business income, taxable only if a permanent establishment exists.

CIT v. Siemens Aktiongesellschaft
310 ITR 320 · 2009 · High Court
259
citing judgments

Reimbursements of actual expenses without any profit element are not taxable income. Additionally, mere amendments to the Income-tax Act do not override the provisions of Double Taxation Avoidance Agreements (DTAAs).

Skycell Communications Ltd. v. DCIT
251 ITR 53 · 2001 · High Court
253
citing judgments

Technical services involve human intervention and expertise, not just routine or machine-based operations. Routine customer support and standard facility provision through technology do not constitute technical services under the Act.

Transmission Corporation of Andhra Pradesh v. CIT
239 ITR 587 · 1999 · Supreme Court
243
citing judgments

The Supreme Court lays down principles for deducting tax at source (TDS) under Section 195 on payments to non-residents, including aspects of income deemed taxable in India and the application of Double Taxation Avoidance Agreements (DTAAs) under Section 90.

ONGC v. CIT
376 ITR 306 · 2015 · Supreme Court
241
citing judgments

Income derived by a non-resident for services related to mineral oil operations, falling under the presumptive taxation regime of Section 44BB, cannot simultaneously be treated as fees for technical services under Section 9(1)(vii). The specific presumptive provisions override the general FTS definition, particularly when DTAA applies.

Judgments citing fees for technical services

Ortus Aircraft Lease 6(Dublin) Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(2)(2) International Taxation, Mumbai

ITA 1106/MUM/2025[2022-23]Status: DisposedITAT Mumbai13 Aug 2025AY 2022-23

Bench: SHRI AMIT SHUKLA (Judicial Member), MS PADMAVATHY S (Accountant Member)

Section 143(3)Section 144C(13)Section 144C(5)

provisions which shall form an integral part of the Convention.‖ xxx ―7. In respect of articles 11 (Dividends), 12 (Interest) and 13 (Royalties, fees for technical services and payments for the use of equipment), if under any Convention, Agreement or Protocol signed after 1-9-1989, between India ... third State which is a member of the OECD, India limits its taxation at source on dividends, interest, royalties, fees for technical services or payments for the use of equipment to a rate lower or a scope more restricted than the rate of scope provided for in this Convention

Income Tax Officer, Alwar vs. Alwar Malt and Agro Foods Manufactures Company Limited, Alwar

In the result the appeal of the revenue in ITA no

ITA 81/JPR/2025[2015-16]Status: DisposedITAT Jaipur06 Aug 2025AY 2015-16

Bench: BEFORE: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Kranti Mehata, C.AFor Respondent: Shri Gaurav Awasthi, JCIT, Sr.-DR
Section 133ASection 194JSection 201Section 201(1)

Hindu undivided family, who is responsible for paying to a resident any sum by way of— (a) fees for professional services, or (b) fees for technical services, or (ba) any remuneration or fees or commission by Alwar Malt and Agro Foods Manufactures Co. Ltd., Alwar. whatever name called, other than ... draft or by any other mode, whichever is earlier, deduct an amount equal to two per cent of such sum in case of fees for technical services (not being a professional services), or royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic

Income Tax Officer, Alwar vs. Alwar Malt and Agro Foods Manufactures Company Limited, Alwar

In the result the appeal of the revenue in ITA no

ITA 80/JPR/2025[2014-15]Status: DisposedITAT Jaipur06 Aug 2025AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Kranti Mehata, C.AFor Respondent: Shri Gaurav Awasthi, JCIT, Sr.-DR
Section 133ASection 194JSection 201Section 201(1)

Hindu undivided family, who is responsible for paying to a resident any sum by way of— (a) fees for professional services, or (b) fees for technical services, or (ba) any remuneration or fees or commission by Alwar Malt and Agro Foods Manufactures Co. Ltd., Alwar. whatever name called, other than ... draft or by any other mode, whichever is earlier, deduct an amount equal to two per cent of such sum in case of fees for technical services (not being a professional services), or royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic

Income Tax Officer, Alwar vs. Alwar Malt and Agro Foods Manufactures Company Limited, Alwar

In the result the appeal of the revenue in ITA no

ITA 79/JPR/2025[2013-14]Status: DisposedITAT Jaipur06 Aug 2025AY 2013-14

Bench: BEFORE: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Kranti Mehata, C.AFor Respondent: Shri Gaurav Awasthi, JCIT, Sr.-DR
Section 133ASection 194JSection 201Section 201(1)

Hindu undivided family, who is responsible for paying to a resident any sum by way of— (a) fees for professional services, or (b) fees for technical services, or (ba) any remuneration or fees or commission by Alwar Malt and Agro Foods Manufactures Co. Ltd., Alwar. whatever name called, other than ... draft or by any other mode, whichever is earlier, deduct an amount equal to two per cent of such sum in case of fees for technical services (not being a professional services), or royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic

Assistant Commissioner of Income Tax, Dehradun vs. Western Geco International Limited, Haryana

The Appeal of the Revenue is dismissed

ITA 141/DDN/2024[2022-23]Status: DisposedITAT Dehradun31 Jul 2025AY 2022-23

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwali.T.A. No. 141/Del/2024 (A.Y 2021-22)

Section 143(3)Section 44BSection 44DSection 9(1)(vii)

Corporation Limited for hiring of services for 4C-3D OBN data processing & interpretation of data D1 to be in the nature of fees for technical services under section 9(1)(vii) of the Act. 5. Aggrieved by the assessment order dated 11/03/2024, the Assessee preferred an Appeal before ... survey study, taking marine data and confirming prospects, maintenance/ upgradation / support of software licenses, etc, is not in the nature of fees for technical services as the same is covered by the exclusion provided in Explanation (2) to Section 9(1) (vii) of the Act being consideration received for “mining

Volkswagen Aktiengesellschaft, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation) 4(3)(1), Mumbai

In the result, the appeal filed by the assessee stands allowed

ITA 7341/MUM/2017[2013-14]Status: DisposedITAT Mumbai31 Jul 2025AY 2013-14

Bench: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHRI (Accountant Member)

Section 143(3)Section 144C(13)

when it is “paid”, i.e., on receipt basis. In India-Germany DTAA, Article 10 (Dividends), Article 11 (Interest) and Article 12 (Royalties and Fees for Technical Services), unlike other articles provide for taxability of income only when such income arises in a contracting state and is 'paid to the resident ... Aktiengesellschaft v. DDIT (ITA No. 124 of 2010), while interpreting the identical language of Article 12, held that income such as royalty or fees for technical services under the India-Germany DTAA is taxable only upon actual receipt. The principle was reaffirmed in a series of judgments, wherein the Court

Ernst & Young U.S. LLP, Noida vs. Assistant Commissioner of Income Tax, Circle International Tax 1(2)(2), New Delhi

In the result, bot the appeals of the assessee stand allowed

ITA 1254/DEL/2025[2018-19]Status: DisposedITAT Delhi31 Jul 2025AY 2018-19

Bench: Shri Prakash Chand Yadav & Shri Naveen Chandraita No.1243/Del/2025 (Assessment Year 2022-23) Ernst & Young U.S. Llp Acit, Circle, C/O Authorized Representative, International Tax- Ernst & Young Llp, Vs. 1(2)(2), New Delhi. 5Th Floor, Tower-2, Plot No.2B, Sector-126, Noida, Gautam Budh Nagar (U.P.)-201304. Pan-Aadfe0355M (Appellant) (Respondent) Assessee By Shri S. Ganesh, Sr. Adv. & Ms. Ananya Kapoor, Adv. Department By Shri Nikhil Kumar Govila, Cit-Dr Date Of Hearing 17/07/2025 Date Of Pronouncement 31/07/2025 O R D E R Per Bench: The Present Appeals Of The Assessee Are Arising Out From The Order Of Ld. Assessing Officer Dated 18Th December, 2024 & 12Th December, 2024 & Relates To Assessment Year 2018-19 & Assessment Year 2022-23 Respectively.

Section 139(4)

there. In other words, salaries paid to such personnel like Mr. Laser are taxable in India and they cannot be considered to be fees for technical services. Further, even as per Section 9 of the Act, the payment cannot be treated as fees for technical service. Explanation 2 to Section ... gives the meaning of the expression "fees for technical services" as per which, inter alia, any consideration which would be income of the recipient chargeable under the head "salaries", then such payment will not be considered as fees for technical services. Thus, even as per the provisions

Ernst & Young U.S. LLP, Noida vs. Assistant Commissioner of Income Tax, Circle International Tax 1(2)(2), New Delhi

In the result, bot the appeals of the assessee stand allowed

ITA 1243/DEL/2025[2022-23]Status: DisposedITAT Delhi31 Jul 2025AY 2022-23

Bench: Shri Prakash Chand Yadav & Shri Naveen Chandraita No.1243/Del/2025 (Assessment Year 2022-23) Ernst & Young U.S. Llp Acit, Circle, C/O Authorized Representative, International Tax- Ernst & Young Llp, Vs. 1(2)(2), New Delhi. 5Th Floor, Tower-2, Plot No.2B, Sector-126, Noida, Gautam Budh Nagar (U.P.)-201304. Pan-Aadfe0355M (Appellant) (Respondent) Assessee By Shri S. Ganesh, Sr. Adv. & Ms. Ananya Kapoor, Adv. Department By Shri Nikhil Kumar Govila, Cit-Dr Date Of Hearing 17/07/2025 Date Of Pronouncement 31/07/2025 O R D E R Per Bench: The Present Appeals Of The Assessee Are Arising Out From The Order Of Ld. Assessing Officer Dated 18Th December, 2024 & 12Th December, 2024 & Relates To Assessment Year 2018-19 & Assessment Year 2022-23 Respectively.

Section 139(4)

there. In other words, salaries paid to such personnel like Mr. Laser are taxable in India and they cannot be considered to be fees for technical services. Further, even as per Section 9 of the Act, the payment cannot be treated as fees for technical service. Explanation 2 to Section ... gives the meaning of the expression "fees for technical services" as per which, inter alia, any consideration which would be income of the recipient chargeable under the head "salaries", then such payment will not be considered as fees for technical services. Thus, even as per the provisions

Microad India Private Limited, Delhi vs. DCIT Circle - 16(2), Delhi

Appeals is allowed

ITA 4715/DEL/2024[2015-16]Status: DisposedITAT Delhi31 Jul 2025AY 2015-16

Bench: Shri S Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Sh. Nikhil Khanna, CAFor Respondent: Sh. Dheeraj Kumar Jain, Sr. DR
Section 195Section 271(1)(c)Section 40

payments made by the appellant to its AE(s) for purchase of online advertisement on third party platforms after deeming them Fees for Technical services. The appellant submitted that the 3 ITA No.-4715/Del/2024 Microad India Pvt. Ltd. aforesaid transactions were in nature of purchase of online advertisements from

Income Tax Officer, Ward-7(1), Pune vs. Hemant Bagareddy Motadoo, Pune

In the result, the appeal filed by the Revenue is allowed for statistical purposes

ITA 1897/PUN/2024[2013-14]Status: DisposedITAT Pune28 Jul 2025AY 2013-14

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2013-14

For Appellant: S/Shri B C Malakar & Yuvraj ChavanFor Respondent: Shri Ramnath P Murkunde
Section 143(2)Section 201Section 40Section 40A(3)Section 68

profession",— (a) in the case of any assessee— (i)….. (ia) any interest, commission or brokerage, [rent, royalty,] fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour

Shell Information Technology International Bv, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation )-4(2)(1), Mumbai

ITA 1750/MUM/2025[2022-23]Status: DisposedITAT Mumbai28 Jul 2025AY 2022-23

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI PRABHASH SHANKAR (Accountant Member)

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Satya Pal Kumar
Section 143(3)Section 144C(13)Section 144C(5)Section 2(24)Section 234BSection 270A

invitation‟, which does not constitute „royalty‟ under the Act as well as India-Netherlands DTAA; Receipts towards IT Support services held as „Fees for Technical Services‟ („FTS‟) under the Act as well as the India-Netherlands DTAA. 5. Erred in holding that payments of Rs.4,85,28,53,200 received ... Support Services. According to the Assessing Officer, the IT Support Services were liable to tax in the hands of the Assessee as ‘Fee for Technical Services’/’royalty’ in terms of Section 9(1)(vii) of the Act as well as in terms of Article

DCIT., Circle-1(1), Hyderabad vs. M/S. Aragen Life Sciences Limited, Hyderabad

In the result, appeal filed by the Revenue is partly allowed for statistical purposes

ITA 639/HYD/2025[2015-16]Status: DisposedITAT Hyderabad25 Jul 2025AY 2015-16

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.639/Hyd/2025 (िनधा"रण वष"/Assessment Year: 2015-16) Dy. Cit Vs. M/S. Aragen Life Sciences Ltd Circle 1(1) Hyderabad Hyderabad Pan:Aabcg3208J (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Sp Chidambaram, Advocate राज" व "ारा/Revenue By:: Shri Narender Kumar Naik, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 22/07/2025 घोषणा की तारीख/Pronouncement: 25/07/2025 आदेश/Order

For Appellant: Shri SP Chidambaram, AdvocateFor Respondent: : Shri Narender Kumar Naik, CIT(DR)
Section 115JSection 80I

with the provisions of section 86; or (A)the capital gains arising on transactions in securities; or (B)the interest, [dividend,] royalty or fees for technical services chargeable to tax at the rate or rates specified in Chapter XII, (fb)the amount or amounts of expenditure relatable to income accruing

Deputy Commissioner of Income Tax (International Taxation), Cirlce - 1(1), Bengaluru vs. Applied Materials India Private Limited, Bengaluru

ITA 1296/BANG/2024[2017-18]Status: DisposedITAT Bangalore24 Jul 2025AY 2017-18

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Dr. Divya K.J., CIT(DR)(ITAT), BengaluruFor Respondent: Shri Suryanarayan, AR
Section 133ASection 195Section 201Section 201(1)Section 9(1)(vii)

source u/s.195 of the Income Tax Act, 1961 [the Act]. The ld. AO held that reimbursement made of salary cost is taxable as Fee for Technical Services [FTS] and as per provisions of section 195 of the Act, tax was deductible at source. A show cause notice was issued ... asked as to why the reimbursement of salary costs paid to the overseas AE towards seconded employees should not be considered as Fees for Technical Services as per the provisions of the Act and DTAA. In response to this, the Assessee had furnished its submissions. The gist of the arguments

Deputy Commissioner of Income Tax (International Taxation), Circle-1(1), Bengaluru vs. Applied Materials India Private Limited, Bengaluru

ITA 1295/BANG/2024[2016-17]Status: DisposedITAT Bangalore24 Jul 2025AY 2016-17

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Respondent by
Section 133ASection 195Section 201Section 201(1)Section 9(1)(vii)

source u/s.195 of the Income Tax Act, 1961 [the Act]. The ld. AO held that reimbursement made of salary cost is taxable as Fee for Technical Services [FTS] and as per provisions of section 195 of the Act, tax was deductible at source. A show cause notice was issued ... asked as to why the reimbursement of salary costs paid to the overseas AE towards seconded employees should not be considered as Fees for Technical Services as per the provisions of the Act and DTAA. In response to this, the Assessee had furnished its submissions. The gist of the arguments

Deputy Commissioner of Income Tax (International Taxation), Circle - 1(1), Bengaluru vs. Applied Materials India Private Limited, Bengaluru

ITA 1294/BANG/2024[2014-15]Status: DisposedITAT Bangalore24 Jul 2025AY 2014-15

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Dr. Divya K.J., CIT(DR)(ITAT), BengaluruFor Respondent: Shri Suryanarayan, AR
Section 133ASection 195Section 201Section 201(1)Section 9(1)(vii)

source u/s.195 of the Income Tax Act, 1961 [the Act]. The ld. AO held that reimbursement made of salary cost is taxable as Fee for Technical Services [FTS] and as per provisions of section 195 of the Act, tax was deductible at source. A show cause notice was issued ... asked as to why the reimbursement of salary costs paid to the overseas AE towards seconded employees should not be considered as Fees for Technical Services as per the provisions of the Act and DTAA. In response to this, the Assessee had furnished its submissions. The gist of the arguments

DCIT-5(2)(2), Mumbai vs. M/S Vodafone Idea Ltd., Mumbai

In the result, the ground no

ITA 2987/MUM/2019[2015-16]Status: DisposedITAT Mumbai24 Jul 2025AY 2015-16

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am

Section 194Section 250Section 40Section 9(1)(vi)

that these are not paid for rendering any managerial, technical or consultancy services and therefore does not fall under the category of 'fee for technical service' (‘FTS') which inter alia does not require deduction of tax on such roaming charges. The assessee's argument is twofold where any payment ... construction, assembly, mining or similar project which would tantamount to income of the recipient chargeable under the head salaries and therefore fee for technical services would include the same. The ld. AO held that as the revenue has filed appeal before the Hon'ble Apex Court in the case

Vodafone Idea Limited (Formerly Idea Cellular Ltd), Mumbai vs. DCIT - 14(2)(1), Mumbai

In the result, the ground no

ITA 2150/MUM/2019[2015-16]Status: DisposedITAT Mumbai24 Jul 2025AY 2015-16

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am

Section 194Section 250Section 40Section 9(1)(vi)

that these are not paid for rendering any managerial, technical or consultancy services and therefore does not fall under the category of 'fee for technical service' (‘FTS') which inter alia does not require deduction of tax on such roaming charges. The assessee's argument is twofold where any payment ... construction, assembly, mining or similar project which would tantamount to income of the recipient chargeable under the head salaries and therefore fee for technical services would include the same. The ld. AO held that as the revenue has filed appeal before the Hon'ble Apex Court in the case

DCIT - 14(2)(1), Mumbai vs. Idea Cellular Ltd., Mumbai

ITA 2180/MUM/2018[2014-15]Status: DisposedITAT Mumbai24 Jul 2025AY 2014-15

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am

Section 194Section 250Section 40Section 9(1)(vi)

that these are not paid for rendering any managerial, technical or consultancy services and therefore does not fall under the category of 'fee for technical service' (‘FTS') which inter alia does not require deduction of tax on such roaming charges. The assessee's argument is twofold where any payment ... construction, assembly, mining or similar project which would tantamount to income of the recipient chargeable under the head salaries and therefore fee for technical services would include the same. The ld. AO held that as the revenue has filed appeal before the Hon'ble Apex Court in the case

DCIT - 14(2)(1), Mumbai vs. Idea Cellular Ltd., Mumbai

In the result, the ground no

ITA 2179/MUM/2018[2013-14]Status: DisposedITAT Mumbai24 Jul 2025AY 2013-14

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am

Section 194Section 250Section 40Section 9(1)(vi)

that these are not paid for rendering any managerial, technical or consultancy services and therefore does not fall under the category of 'fee for technical service' (‘FTS') which inter alia does not require deduction of tax on such roaming charges. The assessee's argument is twofold where any payment ... construction, assembly, mining or similar project which would tantamount to income of the recipient chargeable under the head salaries and therefore fee for technical services would include the same. The ld. AO held that as the revenue has filed appeal before the Hon'ble Apex Court in the case

DCIT - 14(2)(1), Mumbai vs. Idea Cellular Ltd., Mumbai

In the result, the ground no

ITA 2178/MUM/2018[2011-12]Status: DisposedITAT Mumbai24 Jul 2025AY 2011-12

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am

Section 194Section 250Section 40Section 9(1)(vi)

that these are not paid for rendering any managerial, technical or consultancy services and therefore does not fall under the category of 'fee for technical service' (‘FTS') which inter alia does not require deduction of tax on such roaming charges. The assessee's argument is twofold where any payment ... construction, assembly, mining or similar project which would tantamount to income of the recipient chargeable under the head salaries and therefore fee for technical services would include the same. The ld. AO held that as the revenue has filed appeal before the Hon'ble Apex Court in the case