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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

Avm Charities, Chennai vs. ITO, Exemptions Ward, Chennai

In the result, appeals filed by the assessee for AYs 2012-13 to 2014-15 are allowed and appeals filed by the assessee for AYs 2015-16 to 2018-19 are partly allowed

ITA 1636/CHNY/2023[2016-17]Status: DisposedITAT Chennai27 Mar 2024AY 2016-17

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Ble

For Appellant: Shri B. Ramakrishna, FCA &For Respondent: Shri V. Nandakumar, CIT
Section 11Section 11(4)Section 13(1)(c)Section 147Section 164(2)

case of petitioner's expatriate employee, Assessing Officer issued a notice under section 148 in November, 1998 seeking to reassess same income as fees for technical services - Whether law prevailing on date of issue of impugned notice would apply to instant case, and since new section 147 had come into ... case, - O.N.G.C.'s case (supra), it had been held that the income from the contract between the parties was business income and not fee for technical services. As regards alternative remedy, since the notice under section 148 was without jurisdiction, the petitioner should not be relegated to his alternative remedy

M/S Avm Charities, Chennai vs. ITO, Exemptions Ward-1, Chennai

In the result, appeals filed by the assessee for AYs 2012-13 to 2014-15 are allowed and appeals filed by the assessee for AYs 2015-16 to 2018-19 are partly allowed

ITA 1635/CHNY/2023[2015-16]Status: DisposedITAT Chennai27 Mar 2024AY 2015-16

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Ble

For Appellant: Shri B. Ramakrishna, FCA &For Respondent: Shri V. Nandakumar, CIT
Section 11Section 11(4)Section 13(1)(c)Section 147Section 164(2)

case of petitioner's expatriate employee, Assessing Officer issued a notice under section 148 in November, 1998 seeking to reassess same income as fees for technical services - Whether law prevailing on date of issue of impugned notice would apply to instant case, and since new section 147 had come into ... case, - O.N.G.C.'s case (supra), it had been held that the income from the contract between the parties was business income and not fee for technical services. As regards alternative remedy, since the notice under section 148 was without jurisdiction, the petitioner should not be relegated to his alternative remedy

M/S Avm Charities, Chennai vs. ITO, Exemptions Ward-1, Chennai

In the result, appeals filed by the assessee for AYs 2012-13 to 2014-15 are allowed and appeals filed by the assessee for AYs 2015-16 to 2018-19 are partly allowed

ITA 1634/CHNY/2023[2014-15]Status: DisposedITAT Chennai27 Mar 2024AY 2014-15

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Ble

For Appellant: Shri B. Ramakrishna, FCA &For Respondent: Shri V. Nandakumar, CIT
Section 11Section 11(4)Section 13(1)(c)Section 147Section 164(2)

case of petitioner's expatriate employee, Assessing Officer issued a notice under section 148 in November, 1998 seeking to reassess same income as fees for technical services - Whether law prevailing on date of issue of impugned notice would apply to instant case, and since new section 147 had come into ... case, - O.N.G.C.'s case (supra), it had been held that the income from the contract between the parties was business income and not fee for technical services. As regards alternative remedy, since the notice under section 148 was without jurisdiction, the petitioner should not be relegated to his alternative remedy

Avm Charities, Chennai vs. ITO, Exemption Ward, Chennai

In the result, appeals filed by the assessee for AYs 2012-13 to 2014-15 are allowed and appeals filed by the assessee for AYs 2015-16 to 2018-19 are partly allowed

ITA 1633/CHNY/2023[2013-14]Status: DisposedITAT Chennai27 Mar 2024AY 2013-14

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Ble

For Appellant: Shri B. Ramakrishna, FCA &For Respondent: Shri V. Nandakumar, CIT
Section 11Section 11(4)Section 13(1)(c)Section 147Section 164(2)

case of petitioner's expatriate employee, Assessing Officer issued a notice under section 148 in November, 1998 seeking to reassess same income as fees for technical services - Whether law prevailing on date of issue of impugned notice would apply to instant case, and since new section 147 had come into ... case, - O.N.G.C.'s case (supra), it had been held that the income from the contract between the parties was business income and not fee for technical services. As regards alternative remedy, since the notice under section 148 was without jurisdiction, the petitioner should not be relegated to his alternative remedy

M/S. A V M Charities, Chennai vs. ITO, Exemptions Ward-1, Chennai

In the result, appeals filed by the assessee for AYs 2012-13 to 2014-15 are allowed and appeals filed by the assessee for AYs 2015-16 to 2018-19 are partly allowed

ITA 1632/CHNY/2023[2012-13]Status: DisposedITAT Chennai27 Mar 2024AY 2012-13

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Ble

For Appellant: Shri B. Ramakrishna, FCA &For Respondent: Shri V. Nandakumar, CIT
Section 11Section 11(4)Section 13(1)(c)Section 147Section 164(2)

case of petitioner's expatriate employee, Assessing Officer issued a notice under section 148 in November, 1998 seeking to reassess same income as fees for technical services - Whether law prevailing on date of issue of impugned notice would apply to instant case, and since new section 147 had come into ... case, - O.N.G.C.'s case (supra), it had been held that the income from the contract between the parties was business income and not fee for technical services. As regards alternative remedy, since the notice under section 148 was without jurisdiction, the petitioner should not be relegated to his alternative remedy

Income Tax Officer, Chennai vs. Express Publications(Madurai) Private Limited, Chennai

Appeal stand dismissed

ITA 1219/CHNY/2023[2012-2013]Status: DisposedITAT Chennai27 Mar 2024AY 2012-2013

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.730/Chny/2023 (िनधा*रणवष* / Assessment Year: 2010-11) & 2. आयकरअपीलसं./ Ita No.737/Chny/2023 (िनधा*रणवष* / Assessment Year: 2011-12) & 3. आयकरअपीलसं./ Ita No.754/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) M/S. Express Publications (Madurai) Dcit P. Ltd. Corporate Circle-Ii(1) बनाम/ C/O. Sri T.N. Seetharaman, Advocate Chennai. Vs. 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपीलसं./ Ita No.1219/Chny/2023 (िनधा*रणवष* / Assessment Year: 2012-13) Dcit M/S. Express Publications (Madurai) P. Corporate Circle-Ii(1) Ltd. बनाम/ Vs. Chennai C/O. Sri T.N.Seetharaman, Advocate 384 (Old No.196) Lloyds Road, Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-0842-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Assessee By : Shri T.N. Seetharaman (Advocate)- Ld.Ar " थ"कीओरसे/Revenue By : Shri D. Hema Bhupal (Jcit)-Ld. Dr सुनवाई की तारीख/Date Of Hearing : 20-03-2024 घोषणा की तारीख /Date Of Pronouncement : 27-03-2024

For Appellant: Shri T.N. Seetharaman (Advocate)- Ld.ARFor Respondent: Shri D. Hema Bhupal (JCIT)-Ld. DR
Section 143(3)Section 36(1)(iii)

want of deduction of tax at source. 13.2 The Ld. CIT(A), after considering assessee’s submissions, held that Fees for Technical Services means managerial, technical and consultancy services but do not include payments considered as salary by the recipient of such income. Journalism is the process of collection, analyzing ... further appeal before us. 13.3 Admittedly, none of the payee has permanent establishment in India. As noted by Ld. CIT(A), Fees for Technical Services means managerial, technical and consultancy services. The process of gathering information is nothing but a profession and these kind of services are covered under specific

Diamond Manufacturing Management and Consultancy Limited Mauritius, Hyderabad vs. ACIT, Circle International Tax, Visakhapatanam

In the result, appeal of the assessee is allowed

ITA 49/VIZ/2022[2017-2018]Status: DisposedITAT Visakhapatnam26 Mar 2024AY 2017-2018

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri PVSS Prasad, ARFor Respondent: Dr. Satyasai Rath, CIT-DR
Section 115ASection 143(3)Section 9(1)(vii)Section 90(2)

Worldwide Diamond Sorting Pvt Ltd for providing technical, process, marketing and sales assistance services outside India. The assessee has received Fees for Technical Services [hereinafter it is referred in short “FTS”] of Rs. 1,80,19,861/- from M/s. Worldwide Diamond Manufacturers ... opportunism. 3. The Ld. CIT(A), Hyderabad-10 failed to appreciate that under the India – Mauritius Tax Treaty, the Article on taxation of Fees for Technical Services was inserted with effect from 1st April, 2017 ie., after the year under consideration and for the year under consideration the said income

Google Ireland Limited, Ireland vs. DCIT (It), JCIT(OSD) (It) - Circle 1(1), Bengaluru

In the result, the appeals filed by the assessee are allowed

ITA 194/BANG/2024[2016-17]Status: DisposedITAT Bangalore26 Mar 2024AY 2016-17

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

For Appellant: Shri Deepak Chopra, Ms. Priya Tandon, ShriFor Respondent: Shri D.K. Mishra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 148Section 195Section 201Section 9(1)(vi)

premise that the said payments were taxable in India. While the AO held the said payments to be fees for technical services ("FTS"), the CIT(A) held them to be royalty. The Tribunal relied on the decision in Yahoo (supra) to delete the disallowance. It was also observed

Google Ireland Limited, Ireland vs. DCIT (It), JCIT(OSD) (It) - Circle 1(1), Bengaluru

In the result, the appeals filed by the assessee are allowed

ITA 191/BANG/2024[2013-14]Status: DisposedITAT Bangalore26 Mar 2024AY 2013-14

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

For Appellant: Shri Deepak Chopra, Ms. Priya Tandon, ShriFor Respondent: Shri D.K. Mishra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 148Section 195Section 201Section 9(1)(vi)

premise that the said payments were taxable in India. While the AO held the said payments to be fees for technical services ("FTS"), the CIT(A) held them to be royalty. The Tribunal relied on the decision in Yahoo (supra) to delete the disallowance. It was also observed

Shell International B.V., Ahmedabad vs. The ACIT, Intl. Taxn.-1, Ahmedabad

ITA 110/AHD/2022[2018-19]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2018-19

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

Shell International B.V., Mumbai vs. The ACIT, Int.Taxa.-2, Ahmedabad

ITA 563/AHD/2020[2017-18]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2017-18

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-2, Ahmedabad

ITA 1658/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2016-17

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

M/S. Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-2, Ahmedabad

ITA 1657/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2015-16

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-1, Ahmedabad

ITA 2389/AHD/2018[2011-12]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2011-12

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-1, Ahmedabad

ITA 2388/AHD/2018[2010-11]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2010-11

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 2789/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2014-15

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 2788/AHD/2017[2009-10]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2009-10

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 176/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2013-14

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 175/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2012-13

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

facts and in law in treating the cost recovery of Rs. 1,83,16,548 received from STIPL for CHR recruitment fee as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of the Tax Treaty. 4. The learned AO based on the directions ... facts and in law in treating the cost recovery of Rs. 30,50,296 received from SIMPL for IT migration support as fees for technical services under Section 9(1)(vii) of the Act and Article 12 of Tax Treaty. 5. Without prejudice to the above mentioned grounds, the learned

The Institute of Indian Foundrymen, Kolkata vs. ITO, Ward-1(3), Exempt, Kolkata.

In the result, the appeal of the assessee is allowed

ITA 906/KOL/2023[2014-15]Status: DisposedITAT Kolkata18 Mar 2024AY 2014-15

Bench: Shri Sanjay Garg & Shri Rajesh Kumar]

Section 11Section 12ASection 2(15)

aforesaid, we are of the considered view that the receipts of the respondent/assessee wherein from its members were not in the nature of fees for technical services and that the same were exempt from tax having regard to the principle of mutuality.” 18.2. Therefore if the membership fee/ annual entrance