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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

ACIT, New Delhi vs. Filatax Inida Limited, Delhi

In the result, appeal of the assessee is partly allowed

ITA 4635/DEL/2024[2013-14]Status: DisposedITAT Delhi30 Jun 2025AY 2013-14

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 ... 1456/Del/2024 & C.O.Nos.11, 32, 33, 34/Del/2025 & 89, 90 & 91/Del/2024 of the non-deduction of Tax at source on the payment made towards fees for technical services to a foreign company. The AO after reopening the case, vide notice issued on 24.3.2022 asked the assessee to file the details of transactions

Ntt India Private Limited, Mumbai vs. Asstt Comm. of Income Tax-14(1)(1), Mumbai

In the result, the appeal is accordingly partly allowed for statistical purposes

ITA 2491/MUM/2022[2018-19]Status: DisposedITAT Mumbai24 Jun 2025AY 2018-19

Bench: Ms. Padmavathy S & Shri Raj Kumar Chauhanntt India Private Vs. Assessment Unit/Nfac/Dcit Limited Circle 15(1)(2), 1701-1704, B Wing, One Mumbai Bkc, Level 17, G-Block, Aayakar Bhavan, Plot No. C-65, Bandra Mumbai. Kurla Complex, Bandra East, Mumbai-400 051. Pan/Gir No. Aaacd2145G (Applicant) (Respondent)

Section 142(1)Section 143(2)Section 143(3)Section 144CSection 271ASection 92C

facts was not justified. Moreover, not adopting one of the mandatorily prescribed methods to determine the arm’s length price in respect of fees for technical services payable by the respondent-assessee to its associated enterprise, makes the entire transfer pricing agreement unsustainable in law. (e) In view

ACIT, Circle Ltu-1, Chennai vs. Carborundum Universal Limited, Chennai

In the result, the appeals filed by Revenue in ITA Nos

ITA 140/CHNY/2025[2014-15]Status: DisposedITAT Chennai23 Jun 2025AY 2014-15

Bench: Shri Manu Kumar Giri & Shri S.R.Raghunathaआयकर अपीलसं./Ita Nos. 139, 140 & 117/Chny/2025 ("नधा"रण वष" / Assessment Years: 2013-14, 2014-15 & 2018-19)

For Appellant: Ms. Anitha, Addl. CITFor Respondent: Shri Vikram Vijayaraghavan
Section 32(1)(iia)Section 40

agent can at best be called as a service for completion of the export commitment and would not fall within the definition of "fees for technical services". Further, the said sums cannot be taxed in India in the absence of a PE. Accordingly, the AO is directed to delete

Assistant Commissioner of Income Tax, Circle Ltu-1, Chennai vs. Carborundum Universal Limited, Chennai

In the result, the appeals filed by Revenue in ITA Nos

ITA 139/CHNY/2025[2013-14]Status: DisposedITAT Chennai23 Jun 2025AY 2013-14

Bench: Shri Manu Kumar Giri & Shri S.R.Raghunathaआयकर अपीलसं./Ita Nos. 139, 140 & 117/Chny/2025 ("नधा"रण वष" / Assessment Years: 2013-14, 2014-15 & 2018-19)

For Appellant: Ms. Anitha, Addl. CITFor Respondent: Shri Vikram Vijayaraghavan
Section 32(1)(iia)Section 40

agent can at best be called as a service for completion of the export commitment and would not fall within the definition of "fees for technical services". Further, the said sums cannot be taxed in India in the absence of a PE. Accordingly, the AO is directed to delete

ACIT, Ltu Circle 1 Chennai, Chennai vs. Carborundum Universal Limited, Chennai

In the result, the appeals filed by Revenue in ITA Nos

ITA 117/CHNY/2025[2018-19]Status: DisposedITAT Chennai23 Jun 2025AY 2018-19

Bench: Shri Manu Kumar Giri & Shri S.R.Raghunathaआयकर अपीलसं./Ita Nos. 139, 140 & 117/Chny/2025 ("नधा"रण वष" / Assessment Years: 2013-14, 2014-15 & 2018-19)

For Appellant: Ms. Anitha, Addl. CITFor Respondent: Shri Vikram Vijayaraghavan
Section 32(1)(iia)Section 40

agent can at best be called as a service for completion of the export commitment and would not fall within the definition of "fees for technical services". Further, the said sums cannot be taxed in India in the absence of a PE. Accordingly, the AO is directed to delete

Deputy Commissioner of Income Tax, Jhandewalan Extn vs. Spicejet Limited, New Delhi

In the results, both the appeals of Revenue in ITA No

ITA 4597/DEL/2024[2021-22]Status: DisposedITAT Delhi18 Jun 2025AY 2021-22

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 10Section 250Section 40

Limited drew our attention to the relevant provision of DTAA between India and Ireland (Article 12) which are as under:- "1. Royalties or fees for technical services arising in a Contracting State and paid to a resident of the other contracting State may be taxed in that other State ... which they arise, and according to the laws of that State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall exceed 10 per cent of the gross amount of the royalties or fees for technical services

Deputy Commissioner of Income Tax, Jhandewalan Extn vs. Spicejet Limited, Gurgaon

In the results, both the appeals of Revenue in ITA No

ITA 4595/DEL/2024[2020-21]Status: DisposedITAT Delhi18 Jun 2025AY 2020-21

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 10Section 250Section 40

Limited drew our attention to the relevant provision of DTAA between India and Ireland (Article 12) which are as under:- "1. Royalties or fees for technical services arising in a Contracting State and paid to a resident of the other contracting State may be taxed in that other State ... which they arise, and according to the laws of that State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall exceed 10 per cent of the gross amount of the royalties or fees for technical services

Siemens Aktiengesellschaft, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, grounds No

ITA 7779/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 Jun 2025AY 2008-09

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI OMKARESHWAR CHIDARA (Accountant Member)

Section 143(3)Section 234BSection 271(1)(c)Section 271G

covered because ld. AO has relied upon the earlier year orders. 6. In so far as taxability of income by way of royalty fees for technical services whether these to be taxed on accrual basis or on receipt basis as raised in ground No.2., the brief fats are that assessee ... resident company incorporated in Germany having income taxable in India as ‘royalty’ and fees from technical services. In the return of income assessee has offered the said income on receipt basis relying upon India-Germany DTAA. This issue is coming from last several years whether the income of the assessee

M/S. Castlewick Fze, Dubai vs. ACIT, International Taxation, Circle-1(1), Chennai

ITA 459/CHNY/2025[2018-19]Status: DisposedITAT Chennai11 Jun 2025AY 2018-19
For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Ms. E. Pavuna Sundari, CIT
Section 139Section 143(2)Section 143(3)Section 144C(1)Section 148Section 201Section 201(1)Section 234ASection 9(1)(vii)

response to the notice issued u/s.148 / 143(2) / 142(1) of the Act, assessee submitted that there is no specific clause relating to Fees for Technical Services (FTS) in the India-UAE DTAA. It was submitted once the income chargeable to tax as per the DTAA are characterized by excluding ... said draft assessment order, the AO considered the amount received by the assessee company from M/s. Gannon Dunkerly & Co. Ltd., to be `fees for technical services' falling within the ambit of Section 9(1)(vii) of the Act and made an addition of Rs.90 lakhs. Thereby raising a demand

Deputy Commissioner of Income Tax, Central Circle- 3(3), Chennai. vs. M/S. Caterpillar India Pvt. Ltd, Chennai

Appeal is dismissed

ITA 717/CHNY/2023[2014-15]Status: DisposedITAT Chennai06 Jun 2025AY 2014-15

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपीलसं./It(Tp)A No.: 42/Chny/2023 िनधा"रण वष" / Assessment Year: 2014-15 M/S.Caterpillar India Private Limited, The Deputy Commissioner Of 7Th Floor, International Tech Park, Income Tax, Taramani Road, Vs. Central Circle- 3(3), Chennai – 600 113. Chennai – 600 034. [Pan:Aabcc-4615-K] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपीलसं./Ita No.: 717/Chny/2023 िनधा"रण वष" / Assessment Year: 2014-15 The Deputy Commissioner Of Income M/S.Caterpillar India Private Tax, Limited, 7Th Floor, International Tech Park, Central Circle- 3(3), V. Chennai – 600 034. Taramani Road, Chennai – 600 113. [Pan:Aabcc-4615-K] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/Assessee By : Shri Harish Ramanathan, C.A. By Virtual ""थ" की ओर से/Department By : Shri A. Sasikumar, C.I.T. सुनवाई की तारीख/Date Of Hearing : 12.03.2025 घोषणा की तारीख/Date Of Pronouncement : 06.06.2025 आदेश /O R D E R Per S. R. Raghunatha, Am: These Cross Appeals Filed By The Assessee & The Revenue Are Arising Out Of Order Of Commissioner Of Income Tax (Appeals)-18, Chennai U/S. 143(3) R.W.S. 92Ca (3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) For The Assessment Year 2014-15 Dated 07.03.2023. Since, Facts Are Identical & Issues Are Common, For :-2-: It(Tp) A. No:42 /Chny/2023 & The Sake Of Convenience, The Appeal Filed By The Revenue & Assessee Are Being Heard Together & Disposed Off, By This Consolidated Order.

For Appellant: Shri Harish Ramanathan, C.A. by VirtualFor Respondent: Shri A. Sasikumar, C.I.T
Section 143(3)Section 153Section 92CSection 92C(3)Section 92D

reimbursement of secondment charges paid to the AE's shall attract TDS as per the provisions of 195 of the IT Act, as "fees for technical services". 5.1 The learned CIT(A) erred in directing the Assessing Officer to delete the addition made towards ... performed technical and managerial services in India, as such the reimbursements effected to the foreign AE's would partake the character of " fees for technical services" on which tax is liable to be withheld as per the provisions of section

Ethiopian Airlines Group, Ethiopia vs. ACIT, Int. Taxation Circle-1(2)(2), Delhi

ITA 2201/DEL/2024[2017-18]Status: DisposedITAT Delhi05 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 115ASection 133ASection 147Section 195Section 9(1)Section 9(1)(vii)

assessee had admittedly received revenue receipts of Rs.1,70,86,740/- in this factual backdrop (through Dubai route) which stood treated as fees for technical services “FTS” and liable to be assessed in India; in the Assessing Officer’s draft assessment framed on 24th May, 2023, and upheld in learned ... read with the provisions of relevant DTAA. AO has held that the income received by EA is chargeable to tax as fees for technical services (FTS) under section 9(1)(vii) read with section 115A of the Income-tax Act. On merit, assessee's grounds are basically two-fold. First

Ethiopian Airlines Group, Ehiopia vs. ACIT Int. Taxation Circle-1(2)(2), Delhi

ITA 2200/DEL/2024[2016-17]Status: DisposedITAT Delhi05 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 115ASection 133ASection 147Section 195Section 9(1)Section 9(1)(vii)

assessee had admittedly received revenue receipts of Rs.1,70,86,740/- in this factual backdrop (through Dubai route) which stood treated as fees for technical services “FTS” and liable to be assessed in India; in the Assessing Officer's draft assessment framed on 24th May, 2023, and upheld in learned ... read with the provisions of relevant DTAA. AO has held that the income received by EA is chargeable to tax as fees for technical services (FTS) under section 9(1)(vii) read with section 115A of the Income-tax Act. On merit, assessee's grounds are basically two-fold. First

Seabird Marine Services Private Limited, Jamnagar vs. ACIT, Circle - 1, Jamnagar, Jamangar

ITA 83/RJT/2025[2017-18]Status: DisposedITAT Rajkot30 May 2025AY 2017-18

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं./Ita No. 83/Rjt/2025 (निर्धारण वर्ष/Assessment Year: (2017-18) Seabird Marine Services Pvt. Vs. Ltd. Office No. 309 & 310, Centroid Luxuria, Nr. Crystal Mall, Khodiyar Colony, Aerodrome Road, Jamnagar 361006 Assistant Commissioner Of Income-Tax, Circle-1, Jamnagar, Aayakar Bhawan, Nr. Subhash Bridge, Jamnagar -Rajkot Highway, Jamnagar स्थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaccs 9869 C (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Appellant By : Shri S. N. Soparkar, Ld. Ar Respondent By : Shri Sanjay Punglia, Ld. Cit-Dr Date Of Hearing : 30/04/2025 Date Of Pronouncement : 30/05/2025 Per Dr. A. L. Saini, Am: आदेश / Order Captioned Appeal Filed By The Assessee, Pertaining To Assessment Year 2017-18, Is Directed Against The Order Passed By The National Faceless Appeal Centre (Nfac), Dehi/ Commissioner Of Income Tax (Appeal) [In Short 'Ld. Cit(A)'], Dated 02.01.2025, Which In Turn Arises Out Of An Assessment Order Passed By The Assessing Officer, Under Section 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”), Vide Order Dated 31.12.2019. 2. Grounds Of Appeal Raised By The Assessee Are As Follows: “All The Below Mentioned Grounds Of Appeal Are Independent & Without Prejudices To Each Other.

For Appellant: Shri S. N. Soparkar, Ld. ARFor Respondent: Shri Sanjay Punglia, Ld. CIT-DR
Section 114Section 115JSection 143(3)

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

Coursera Inc., California vs. ACIT, Circle Intl Tax-1(2)(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 1958/DEL/2025[2022-23]Status: HeardITAT Delhi29 May 2025AY 2022-23

Bench: Shri Vijay Pal Rao & Shri Naveen Chandracoursera Inc. Vs. Acit, Circle-1(2)(1) 381, East Evelyn Avenue International Taxation, Mountain View, Civic Centre, Minto Road California United States New Delhi – 110002 Of America - 94040 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aaicc4141K Appellant .. Respondent

For Appellant: Sh. Sachit Jolly, Sr. Adv, &For Respondent: Dr. Vedanshu Tripathi, CIT, DR
Section 139(1)Section 143Section 144C(5)Section 153Section 234BSection 270A

erred in holding that consideration of Rs. 89,28,61,219/- received by the Appellant from enterprise customers constitutes fee for technical services under the Act and the India-US tax treaty. 5. That on the facts and circumstances of the AO and DRP appreciating that the Appellant provided standard ... erred in not appreciating that User Services merely criterion with respect to characterisation of receipts from Indian customers as fee for technical services under the Act or fee or included services under the India-US tax treaty. 7. That on the facts and circumstances of the case

Deputy Commissioner of Income Tax, Gurgaon vs. Hays Business Solutions Private Limited, Gurgaon

The appeal of the Revenue is dismissed

ITA 3003/DEL/2023[2014-15]Status: DisposedITAT Delhi29 May 2025AY 2014-15

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)

Section 143(2)Section 143(3)Section 195(1)Section 250Section 37Section 40

submitted by ld. AR that the AO has failed to appreciate the fact that while holding that managing service paid to its AE fee for technical services chargeable to tax under Article 13 of India UK Tax Treaty as services are made available to the assessee and the disallowance ... while making payment of management charges. The ld. AR further filed detailed written submission which is as under: “Management fee is not 'Fee for Technical Services' as per the provision of the Act read with India-UK Tax Treaty:  Hays UK, being a tax resident of UK, is entitled

N R Corporation, Surat vs. PCIT-1, Surat

In the result, the appeal of the assessee is allowed

ITA 526/SRT/2024[2018-19]Status: DisposedITAT Surat28 May 2025AY 2018-19

Bench: Shri Pawan Singh & Shri Bijayananda Prusethआयकर अपील सं./Ita No.526/Srt/2024 Assessment Year: 2018-19 (Physical Hearing) N. R. Corporation, Vs. The Pcit - 1, B-202, Capital Status, Opp – Hariom Surat Nagar, Near Atman Park, L. P. Savani Road, Adajan, Surat - 395009 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aamfn9368A (Appellant) (Respondent) Appellant By Shri Suresh K. Kabra, Ca Respondent By Shri Ritesh Mishra, Cit-Dr Date Of Hearing 13/03/2025 Date Of Pronouncement 28/05/2025

Section 143Section 143(2)Section 143(3)Section 194CSection 263Section 40

PCIT found that assessee had claimed labour expenses of Rs.1,33,59,652/-, architect fees of Rs.8,07,941/- and professional / consultancy fees for technical services of Rs.50,12,587/-. The total expenses on these three accounts was Rs.1,56,80,153/-. The assessee had furnished details of expenses

Emerson Electric Company (India)Pvt. Ltd, Mumbai vs. DCIT 1(2) (1) Jurisdictional Assessing Officer, Mumbai

In the result, this ground of appeal is allowed

ITA 2323/MUM/2022[2018-19]Status: DisposedITAT Mumbai28 May 2025AY 2018-19

Bench: Shri Pawan Singh&Girish Agrawal(Physical Hearing) Emerson Electric Company (India) Dcit, Range-1(2)(1), Mumbai Private Limited, Delphi ‘B’ Wing, Vs Aayakar Bhawan, 601-603, Orchard Avenue, Mumbai Hiranandani Business Park, Powai, Mumbai-400076. [Pan No. Aaace1260B] Appellant / Assessee Respondent / Revenue

Section 143(3)Section 144BSection 144C(13)Section 254(1)

erroneously holding that assessee was required to deduct tax under section 195 for the impugned payments as in the nature of fees for technical services. The assessing officer arrived on his conclusion by taking view that Mr. Zullo was providing services in the nature of fee for technical services ... alleging that there exists no employer relationship between Mr. Zullo and assessee and that he was providing services in the nature of fees for technical services on behalf of the assessee group. It is settled position in law that in absence of any material or evidence, the assessing officer cannot

ITO (International Taxation) Gurgaon, Udyog Vihar, Gurgaon vs. Bain and Company India Private Ltd., Dlf Cyber City Phase-II

In the result, appeals of the Revenue are dismissed

ITA 2869/DEL/2024[2014-15]Status: HeardITAT Delhi28 May 2025AY 2014-15

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishra

Section 195Section 201

remittance made by the assessee to Bain US on the ground that the reimbursement of client related expenses qualify as Fees for Technical Services (FTS) and reimbursement of computer maintenance charges qualify as royalty/fees for technical services under the India US DTAA read with Income Tax Act. On appeal

ITO (International Taxation) Gurgaon, Udyog Vihar, Gurgaon vs. Bain and Company India Private Ltd., Gurgaon

In the result, appeals of the Revenue are dismissed

ITA 2867/DEL/2024[2012-13]Status: HeardITAT Delhi28 May 2025AY 2012-13

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishra

Section 195Section 201

remittance made by the assessee to Bain US on the ground that the reimbursement of client related expenses qualify as Fees for Technical Services (FTS) and reimbursement of computer maintenance charges qualify as royalty/fees for technical services under the India US DTAA read with Income Tax Act. On appeal

Punjab Small Industries and Export Corporation Ltd., Chandigarh vs. Assistant Commissioner of Income Tax, Circle 2(1), Chandigarh

In the result, appeal of the Assessee is partly allowed

ITA 627/CHANDI/2024[2016-17]Status: DisposedITAT Chandigarh23 May 2025AY 2016-17

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Section 143(3)Section 250Section 40Section 40aSection 43B

clause,— (i) "commission or brokerage" shall have the same meaning as in clause (i) of the Explanation to section 194H; 6 (ii) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9; (iii) "professional services" shall have