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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

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

In the result, the ground no

ITA 1777/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

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

ITA 1776/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

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

In the result, the ground no

ITA 1775/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

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

In the result, the ground no

ITA 5945/MUM/2017[2012-13]Status: DisposedITAT Mumbai24 Jul 2025AY 2012-13

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

Idea Cellular Ltd, Mumbai vs. ACIT Hq (Judl.) to CIT-14, Mumbai

In the result, the ground no

ITA 5765/MUM/2017[2012-13]Status: DisposedITAT Mumbai24 Jul 2025AY 2012-13

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 tantamout 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

Dy. Commississioner of Income Tax, Dehradun vs. Schlumberger Asia Services Limited, Gurgaon

In the result, the Cross Objection No

ITA 172/DDN/2024[2008-09]Status: DisposedITAT Dehradun18 Jul 2025AY 2008-09

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 44B

prospecting, extraction, or production of mineral oil, though they may be ancillary works contemplated there under, the same cannot be categorized as "fees for technical services" and have to be included in the revenue chargeable to tax under section 44BB of the Act. 6. Further in Assessee’s own cases

Assistant Commissioner of Income Tax, Dehradun vs. Schlumberger Asia Services Limited, Haryana

In the result, the Cross Objection No

ITA 143/DDN/2024[2016-17]Status: DisposedITAT Dehradun18 Jul 2025AY 2016-17

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 44B

prospecting, extraction, or production of mineral oil, though they may be ancillary works contemplated there under, the same cannot be categorized as "fees for technical services" and have to be included in the revenue chargeable to tax under section 44BB of the Act. 6. Further in Assessee’s own cases

Assistant Commissioner of Income Tax, Dehradun vs. Schlumberger Asia Services Limited, Haryana

In the result, the Cross Objection No

ITA 142/DDN/2024[2017-18]Status: DisposedITAT Dehradun18 Jul 2025AY 2017-18

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 44B

prospecting, extraction, or production of mineral oil, though they may be ancillary works contemplated there under, the same cannot be categorized as "fees for technical services" and have to be included in the revenue chargeable to tax under section 44BB of the Act. 6. Further in Assessee’s own cases

ACIT, New Delhi vs. Italian Thai Development Public Company, Delhi

In the result, all the appeals of the appellant/revenue are dismissed

ITA 2873/DEL/2024[2021-22]Status: DisposedITAT Delhi18 Jul 2025AY 2021-22

Bench: Shri Brajesh Kumar Singh & Shri Vimal Kumarassessment Year: 2018-19 Assessment Year: 2019-20 Assessment Year: 2020-21 Assessment Year: 2021-22 Assistant Commissioner Of Vs. Italian Thai Development Income Tax Public Company, 301 302 Delhi Tower District Centre Janakpuri, Janakpuri A-3 S.O. Janakpuria-3 West Delhi Pin: 1100 58 Delhi Pan: Aabci2013D (Appellant) (Respondent)

For Appellant: Shri S.R. Wadhwa, Adv. & MsFor Respondent: Shri Rohit Garg, CIT DR
Section 1Section 143(2)Section 143(3)Section 250

Learned Authorised Representative for assessee submitted that the respondent company had earned and also disclosed income in the nature of royalty and fees for technical services (FTS) while filing its returns of income for the A.Ys

ACIT, New Delhi vs. Italian Thai Development Public Company, Delhi

In the result, all the appeals of the appellant/revenue are dismissed

ITA 2872/DEL/2024[2020-21]Status: DisposedITAT Delhi18 Jul 2025AY 2020-21

Bench: Shri Brajesh Kumar Singh & Shri Vimal Kumarassessment Year: 2018-19 Assessment Year: 2019-20 Assessment Year: 2020-21 Assessment Year: 2021-22 Assistant Commissioner Of Vs. Italian Thai Development Income Tax Public Company, 301 302 Delhi Tower District Centre Janakpuri, Janakpuri A-3 S.O. Janakpuria-3 West Delhi Pin: 1100 58 Delhi Pan: Aabci2013D (Appellant) (Respondent)

For Appellant: Shri S.R. Wadhwa, Adv. & MsFor Respondent: Shri Rohit Garg, CIT DR
Section 1Section 143(2)Section 143(3)Section 250

Learned Authorised Representative for assessee submitted that the respondent company had earned and also disclosed income in the nature of royalty and fees for technical services (FTS) while filing its returns of income for the A.Ys

ACIT, Delhi vs. Italian Thai Development Public Company, Delhi

In the result, all the appeals of the appellant/revenue are dismissed

ITA 2871/DEL/2024[2019-20]Status: DisposedITAT Delhi18 Jul 2025AY 2019-20

Bench: Shri Brajesh Kumar Singh & Shri Vimal Kumarassessment Year: 2018-19 Assessment Year: 2019-20 Assessment Year: 2020-21 Assessment Year: 2021-22 Assistant Commissioner Of Vs. Italian Thai Development Income Tax Public Company, 301 302 Delhi Tower District Centre Janakpuri, Janakpuri A-3 S.O. Janakpuria-3 West Delhi Pin: 1100 58 Delhi Pan: Aabci2013D (Appellant) (Respondent)

For Appellant: Shri S.R. Wadhwa, Adv. & MsFor Respondent: Shri Rohit Garg, CIT DR
Section 1Section 143(2)Section 143(3)Section 250

Learned Authorised Representative for assessee submitted that the respondent company had earned and also disclosed income in the nature of royalty and fees for technical services (FTS) while filing its returns of income for the A.Ys

ACIT, Delhi vs. Italian Thai Development Public Company, Delhi

In the result, all the appeals of the appellant/revenue are dismissed

ITA 2870/DEL/2024[2018-19]Status: DisposedITAT Delhi18 Jul 2025AY 2018-19

Bench: Shri Brajesh Kumar Singh & Shri Vimal Kumarassessment Year: 2018-19 Assessment Year: 2019-20 Assessment Year: 2020-21 Assessment Year: 2021-22 Assistant Commissioner Of Vs. Italian Thai Development Income Tax Public Company, 301 302 Delhi Tower District Centre Janakpuri, Janakpuri A-3 S.O. Janakpuria-3 West Delhi Pin: 1100 58 Delhi Pan: Aabci2013D (Appellant) (Respondent)

For Appellant: Shri S.R. Wadhwa, Adv. & MsFor Respondent: Shri Rohit Garg, CIT DR
Section 1Section 143(2)Section 143(3)Section 250

Learned Authorised Representative for assessee submitted that the respondent company had earned and also disclosed income in the nature of royalty and fees for technical services (FTS) while filing its returns of income for the A.Ys

Jose Salvador Bemvindo Fernandes, Cuncolim, Goa vs. Income Tax Officer, W-1, Margao, Goa

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

ITA 56/PAN/2025[2015-16]Status: DisposedITAT Panaji17 Jul 2025AY 2015-16

Bench: Shri Pavan Kumar Gadale & Shri G D Padmahshalii T A. Nos.56/Pan/2025 (A.Y. 2015-16) Jose Salvador Bemvindo Ito-Ward-1, Vs Fernandes, Blessings Pioneer . Voddy, Cuncolim, Complex, Salcete-403703, Old Market, Goa. Margoa, Goa-403601. Pan/Gir No. Abjpf7713K (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By Shri.Narcinva Lotlikar.Ar Revenue By Smt.Rijula Uniyal.Sr.Dr सुनवाई क" तार"ख/Date Of Hearing 07.07.2025 घोषणा क" तार"ख/Date Of Pronouncement 17.07.2025 Order Per Pavan Kumar Gadale ,Jm: The Assesse Has Filed The Appeal Against The Order Of The Nfac/Cit(A) Delhi Passed U/Sec147 R.W.S144B & U/Sec 250 Of The Act. 2. At The Time Of Hearing, It Was Found That There Is A Delay Of 45 Days In Filing The Appeal Before The Hon’Ble Tribunal & The Assesse Has Filed An Affidavit For Condonation Of Delay. Whereas, The Facts Mentioned In The Affidavit Are Reasonable & Sufficient Cause Was Explained & The Ld. Dr Has No Specific Objections. Accordingly, We Condone The 2 Ita. No.56/Pan/2025 Jose Salvador Bemvindo Fernandes. Delay & Admit The Appeal. The Assesse Has Raised The Grounds Of Appeal Challenging The Ex-Parte Order Of The Cit(A) Sustaining The Addition Made By The Assessing Officer.

Section 144

there was no compliance to the notice. The Assessing Officer based on the details of acquisition of Immovable property and receipt of Fees For Technical Services (FTS) in the F.Y.2014-15 has issued notice u/sec142(1) of the act on 28.12.2022 ,24.01.2023 and show cause notice to substantiate sources of investment

Edenred Pte Ltd, Mumbai vs. DCIT Int. Taxational 2(2)(1), Mumbai

In the result, the appeal by the assessee is allowed

ITA 749/MUM/2025[2022-23]Status: DisposedITAT Mumbai17 Jul 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhailedenred Pte Ltd., C/O. Walker Chandiok & Co. Llp, 16Th Floor, Tower Lll, One International Center, S B Marg, Prabhadevi (West), ............... Appellant Mumbai-400013. Pan : Aacce8636P V/S Deputy Commissioner Of Income Tax – International Taxation -2(2)(1), Room No. 606, 6Th Floor, ……………… Respondent Kautilya Bhavan, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051. Assessee By : Shri Jitendra Singh/Ms. Shivali Mhatre Revenue By : Shri Krishna Kumar, Sr.Dr

For Appellant: Shri Jitendra Singh/Ms. Shivali MhatreFor Respondent: Shri Krishna Kumar, Sr.DR
Section 142(1)Section 143(2)Section 143(3)Section 144C(5)

technical services as defined in the DTAA, (vi) therefore, the fees paid to AXA ARC by the applicant does not amount to fees for technical services within the meaning of the DTAA, (vii) as regards the payments made for providing access to software applications and to the server hardware system

DCIT, Mumbai vs. Hsbc Bank Plc, London

In the result, the appeal of the assessee is allowed and the appeals of Revenue are dismissed

ITA 1538/MUM/2025[2020-21]Status: DisposedITAT Mumbai16 Jul 2025AY 2020-21

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Niraj ShethFor Respondent: Shri Krishna Kumar
Section 143(3)Section 144C(1)Section 144C(3)Section 192

head of reimbursement of expenses of Rs.10,06,66,731/- received from HSBC Electronic Data Processing (India) Private Limited (HDPI) taxed as fees for technical services (FTS). 2. Whether, on the facts and in the circumstances of the case and in law, the CIT(A) has erred in deleting ... accept this contention and held that the amounts paid by the three agents to the assessee were in the nature of 'Fees for Technical Services' liable to tax in India under Article 13(4) of the Double Taxation Avoidance Agreement between India and Denmark; and, accordingly taxed

Mohd. Asfand Akhtar, Kanpur vs. Assistant Commissioner of Income Tax, Range-1, Kanpur

In the result, the appeal of the assessee is allowed

ITA 138/LKW/2022[2013-14]Status: DisposedITAT Lucknow09 Jul 2025AY 2013-14

Bench: SH. KUL BHARAT, VICE PRESIDENT AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. Ashish Jaiswal, AdvocateFor Respondent: Sh. R.K. Agarwal, CIT DR
Section 143(3)Section 195Section 250

section 195 of the Act were not attracted. It had also been submitted in that case that as per the tax avoidance treaties, fees for technical services paid to non-residents were chargeable to tax in India only in the event that technical skill / know how or process was transferred

Asian Honda Motor Co. Ltd., Thailand vs. Deputy Commissioner of Income Tax, DDIT/ADIT (International Taxation), Noida

In the result, the grounds

ITA 711/DEL/2025[2022-23]Status: DisposedITAT Delhi04 Jul 2025AY 2022-23

Bench: Ms. Madhumita Roy & Shri Naveen Chandraasian Honda Motor Co. Vs. Dcit, Ddit/Adit Ltd., No.14, Sarasin (International Tax) Building, Surasak Road, Room No. 602, 6Th Floor, Khwaeng, Silom Khet Aayakar Bhawan, A-2D, Bangrak, Bangkok Sector 24, Gautam Budh Metropolis, Nagar, Noida, Thailand, 10500 Uttar Pradesh – 201307 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aaica2531P Appellant .. Respondent

For Appellant: Sh. Kamal Sawhney, Adv &For Respondent: Sh. Vijay B Vasanta, CIT, DR
Section 143(3)Section 144C(1)Section 144C(13)Section 144C(5)

HMSI in the course of its business and services being rendered are part of it’s business objectives and in the absence of Fees for Technical Services (FTS) clause in INDIA- Thailand Double Taxation Avoidance Agreement (hereinafter referred to as “DTAA”), these services being rendered by it are not taxable

Green Infra Wind Farm Asset Ltd., Gurugram vs. ACIT, Circle 10(2), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 930/DEL/2020[2016-17]Status: DisposedITAT Delhi04 Jul 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Assessment Year : 2016-17] Green Infra Wind Farm Asset Ltd., Vs Acit, 5Th Floor, Tower C, Building No.8, Circle-10(2), Dlf Cyber City, Gurugram, New Delhi. Haryana-122002. Pan-Aaecg4080H Appellant Respondent Appellant By Shri Vartik Chokshi, Ca & Shri Biren Shah, Ca Respondent By Shri Rajesh Kumar Dhanesta, Sr.Dr Date Of Hearing 23.04.2025 Date Of Pronouncement 04.07.2025 Order

Section 115JSection 143(3)Section 250

assessee, being a foreign company, from,— (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, if the income-tax payable thereon in accordance with the provisions ... assessee, being a foreign company, from,— (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, if such income is credited to the statement of profit and loss

DCIT(It)-3(2)(2), Mumbai vs. Murex Southeast Asia Private Limited, Singapore

The appeal of the Revenue is dismissed

ITA 1453/MUM/2025[2014-15]Status: DisposedITAT Mumbai30 Jun 2025AY 2014-15

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

Section 250Section 271(1)(c)

India-Singapore DTAA. The assessee further claimed that the receipts towards maintenance and training services to Indian customers as not taxable as Fees for Technical Services (FTS) as par Article 12 of India-Singapore DTAA as the services does not "make available" any technical knowledge, experience, skill, know

ACIT, New Delhi vs. Filatex India Limited, Delhi

ITA 5000/DEL/2024[2015-16]Status: DisposedITAT Delhi30 Jun 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

payment on account of technical services to a foreign company and that these remittances are liable to withhold taxes within the definition of Fee for Technical Services under the provisions of Sec 9(1)(vi) and (vii) of the IT Act and as per Article 12(4) of the DTAA