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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, Delhi vs. Air France, Delhi

The appeals of the assessee are dismissed and appeals of the revenue are dismissed

ITA 5310/DEL/2025[2018-19]Status: DisposedITAT Delhi09 Jan 2026AY 2018-19

Bench: Shri M. Balaganesh & Shri Vimal Kumar

Section 143(3)Section 250

that the services rendered are in the nature of technical services, hence, the income derived from such services has to be treated as Fees for Technical Services (FTS). Proceeding further, he observed that the assessee provides technical handling services to Austrian Airlines on daily basis for which the assessee ... claim of the assessee that profit from technical handling services is covered by Article 8 and in treating the Technical Income as “fee for technical services” at Rs. 1,81,79,476/- covered u/s 115A read with Section 44D and taxed the same at 20% of the gross receipts

Air France, Delhi vs. DCIT Circle-1 (1) (10, Delhi

The appeals of the assessee are dismissed and appeals of the revenue are dismissed

ITA 5206/DEL/2025[2018-19]Status: DisposedITAT Delhi09 Jan 2026AY 2018-19

Bench: Shri M. Balaganesh & Shri Vimal Kumar

Section 143(3)Section 250

that the services rendered are in the nature of technical services, hence, the income derived from such services has to be treated as Fees for Technical Services (FTS). Proceeding further, he observed that the assessee provides technical handling services to Austrian Airlines on daily basis for which the assessee ... claim of the assessee that profit from technical handling services is covered by Article 8 and in treating the Technical Income as “fee for technical services” at Rs. 1,81,79,476/- covered u/s 115A read with Section 44D and taxed the same at 20% of the gross receipts

Air France, New Delhi vs. DCIT, Central Circle-1(1)(1), Delhi

The appeals of the assessee are dismissed and appeals of the revenue are dismissed

ITA 5205/DEL/2025[2017-18]Status: DisposedITAT Delhi09 Jan 2026AY 2017-18

Bench: Shri M. Balaganesh & Shri Vimal Kumar

Section 143(3)Section 250

that the services rendered are in the nature of technical services, hence, the income derived from such services has to be treated as Fees for Technical Services (FTS). Proceeding further, he observed that the assessee provides technical handling services to Austrian Airlines on daily basis for which the assessee ... claim of the assessee that profit from technical handling services is covered by Article 8 and in treating the Technical Income as “fee for technical services” at Rs. 1,81,79,476/- covered u/s 115A read with Section 44D and taxed the same at 20% of the gross receipts

Bombardier Transportation Gmmh, New Delhi vs. Addldirecoootor of Inomce-Tax (International Taxation), Range-1, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 4547/DEL/2017[2009-10]Status: DisposedITAT Delhi07 Jan 2026AY 2009-10

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.5732/धिल्ली/2011(नि.व. 2008-09) Bombardier Transportation Gmbh, C/O M/S. Bombardier Transportation India Ltd., 3Rd Floor, B-Wing, Somdutt Chambers-I, Bhikaji Cama Place, New Delhi ...... अपीलार्थी/Appellant Pan: Aadcb-4031-C बिाम Vs. Assistant Director Of Income Tax, ..... प्रनिवादी/Respondent Circle 1(1), New Delhi आअसं.4547/धिल्ली/2017(नि.व. 2009-10) Bombardier Transportation Gmbh, C/O M/S. Bombardier Transportation India P. Ltd., Asset No. 2, 3Rd Floor, Novotel- Pullman Commercial Tower, Aero City, Delhi International Airport, New Delhi 110037 ...... अपीलार्थी/Appellant Pan: Aadcb-4031-C बिाम Vs. Assistant Director Of Income Tax, ..... प्रनिवादी/Respondent Circle 1(1), New Delhi आअसं.4511/धिल्ली/2017(नि.व. 2009-10) Deputy Commissioner Of Income Tax, (International Taxation), R. No. 409, E-2 Block, 4Th Floor, Civic Centre, Near Minto Road, ...... अपीलार्थी/Appellant New Delhi बिाम Vs. Bombardier Transportation Gmbh, C/Co Asa & Associates, K S House 118, Shahpur Jat, New Delhi 110049 ..... प्रनिवादी/Respondent Pan: Aadcb-4031-C

For Appellant: S/Shri Deepak Chopra, Anmol Anand &For Respondent: Ms. Ekta Jain CIT-DR &
Section 143(3)Section 234BSection 271(1)(c)

purview of Article 12(4) of India-Germany DTAA and treated the payments as income of the assessee in the nature of Fee for Technical Services (FTS) and accordingly made addition of Rs.28,04,14,234/-. The assessee filed objections before the Dispute Resolution Panel (DRP). The DRP vide directions ... Clause of India-Germany DTAA i.e. Article 12(4) of the DTAA that defines FTS. The same reads as under:- “4. The term "fees for technical services" as used in this Article means payments of any amount in consideration for the services of managerial, technical or consultancy nature, including

DCIT, Circle- 1(1)(2), Intl. Taxation, New Delhi vs. Bombardier Transportation Gmbh, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 4511/DEL/2017[2009-10]Status: DisposedITAT Delhi07 Jan 2026AY 2009-10

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.5732/धिल्ली/2011(नि.व. 2008-09) Bombardier Transportation Gmbh, C/O M/S. Bombardier Transportation India Ltd., 3Rd Floor, B-Wing, Somdutt Chambers-I, Bhikaji Cama Place, New Delhi ...... अपीलार्थी/Appellant Pan: Aadcb-4031-C बिाम Vs. Assistant Director Of Income Tax, ..... प्रनिवादी/Respondent Circle 1(1), New Delhi आअसं.4547/धिल्ली/2017(नि.व. 2009-10) Bombardier Transportation Gmbh, C/O M/S. Bombardier Transportation India P. Ltd., Asset No. 2, 3Rd Floor, Novotel- Pullman Commercial Tower, Aero City, Delhi International Airport, New Delhi 110037 ...... अपीलार्थी/Appellant Pan: Aadcb-4031-C बिाम Vs. Assistant Director Of Income Tax, ..... प्रनिवादी/Respondent Circle 1(1), New Delhi आअसं.4511/धिल्ली/2017(नि.व. 2009-10) Deputy Commissioner Of Income Tax, (International Taxation), R. No. 409, E-2 Block, 4Th Floor, Civic Centre, Near Minto Road, ...... अपीलार्थी/Appellant New Delhi बिाम Vs. Bombardier Transportation Gmbh, C/Co Asa & Associates, K S House 118, Shahpur Jat, New Delhi 110049 ..... प्रनिवादी/Respondent Pan: Aadcb-4031-C

For Appellant: S/Shri Deepak Chopra, Anmol Anand &For Respondent: Ms. Ekta Jain CIT-DR &
Section 143(3)Section 234BSection 271(1)(c)

purview of Article 12(4) of India-Germany DTAA and treated the payments as income of the assessee in the nature of Fee for Technical Services (FTS) and accordingly made addition of Rs.28,04,14,234/-. The assessee filed objections before the Dispute Resolution Panel (DRP). The DRP vide directions ... Clause of India-Germany DTAA i.e. Article 12(4) of the DTAA that defines FTS. The same reads as under:- “4. The term "fees for technical services" as used in this Article means payments of any amount in consideration for the services of managerial, technical or consultancy nature, including

Bombardier Transportation Gmbh, New Delhi vs. ADIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 5732/DEL/2011[2008-09]Status: DisposedITAT Delhi07 Jan 2026AY 2008-09
Section 143(3)Section 234BSection 271(1)(c)

purview of Article 12(4) of India-Germany DTAA and treated the payments as income of the assessee in the nature of Fee for Technical Services (FTS) and accordingly made addition of Rs.28,04,14,234/-. The assessee filed objections before the Dispute Resolution Panel (DRP). The DRP vide directions ... India-Germany DTAA i.e. Article 12(4) of the DTAA that defines FTS. The same reads as under:- 20. “4. The term "fees for technical services" as used in this Article means payments of any amount in consideration for the services of managerial, technical or consultancy nature, including the provision

Iyogi Technical Services Private Limited, Delhi vs. DCIT, Delhi

In the result, the Revenue’s appeal is partly allowed as indicated above

ITA 323/DEL/2022[2012-13]Status: DisposedITAT Delhi05 Jan 2026AY 2012-13

Bench: SHRIS.RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)

For Appellant: Shri Gagan Kumar, AdvocateFor Respondent: Shri Dharm Veer Singh, CIT DR
Section 143(2)Section 194(2)Section 195Section 9(1)(vii)

relying on the above clauses, he came to the conclusion that the services rendered are squarely covered by the definition of fees for technical services as per Explanation 2 to section 9(1)(vii) of the Act. Further he observed that if there is any doubt relating to chargeability

Addl. CIT, Special Range- 4, New Delhi vs. Iyogi Technical Services Pvt. Ltd., New Delhi

In the result, the Revenue’s appeal is partly allowed as indicated above

ITA 2064/DEL/2018[2013-14]Status: DisposedITAT Delhi05 Jan 2026AY 2013-14

Bench: SHRIS.RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)

For Appellant: Shri Gagan Kumar, AdvocateFor Respondent: Shri Dharm Veer Singh, CIT DR
Section 143(2)Section 194(2)Section 195Section 9(1)(vii)

relying on the above clauses, he came to the conclusion that the services rendered are squarely covered by the definition of fees for technical services as per Explanation 2 to section 9(1)(vii) of the Act. Further he observed that if there is any doubt relating to chargeability

Bechtel Ltd, London vs. ACIT, Circle 1(1)(2), International Taxation, New Delhi

In the result, appeal of the assessee is allowed

ITA 756/DEL/2023[2020-21]Status: DisposedITAT Delhi31 Dec 2025AY 2020-21
Section 143(2)Section 143(3)Section 144C(13)Section 44DSection 9(1)(vii)

erred in confirming that the service receipts of the Appellant frown RII, are taxable in India as Fee for Technical Services (FIS) under Section 901(vi) of the Act. 6. That on the facts and circumstances of the case and in law. the Ld. AO has erred in proposing ... whether receipts by the Appellant for rendition of "Engineering and Procurement Support Services" rendered from outside India are in the nature of "Fees for Technical Services" ("FTS") as set out under Article 13(4)(c) of the India - UK DTAA. The said Article is reproduced below, for the sake

Bechtel Limited, London vs. ACIT, Circle Int. Tax 1(1)(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 1816/DEL/2022[2018-19]Status: DisposedITAT Delhi31 Dec 2025AY 2018-19
Section 143(2)Section 143(3)Section 144C(13)Section 44DSection 9(1)(vii)

erred in confirming that the service receipts of the Appellant frown RII, are taxable in India as Fee for Technical Services (FIS) under Section 901(vi) of the Act. 6. That on the facts and circumstances of the case and in law. the Ld. AO has erred in proposing ... whether receipts by the Appellant for rendition of "Engineering and Procurement Support Services" rendered from outside India are in the nature of "Fees for Technical Services" ("FTS") as set out under Article 13(4)(c) of the India - UK DTAA. The said Article is reproduced below, for the sake

DCIT, Circle 3 4, Mumbai vs. Tata Consultancy Services Limited, Mumbai

In the result, appeals of both, revenue and assessee are partly

ITA 2244/MUM/2025[2017-18]Status: DisposedITAT Mumbai30 Dec 2025AY 2017-18

Bench: Shri Pawan Singh & Shri Girish Agrawal

For Appellant: Shri Porus Kaka, Sr. AdvocateFor Respondent: Shri Ajay Chandra, CIT DR
Section 92CSection 92C(3)

IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT

Acronis Asia Pte Ltd, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation )Range-1(1)(1), Mumbai

In the result, the appeal filed by the assessee is

ITA 2035/MUM/2025[2022-23]Status: DisposedITAT Mumbai30 Dec 2025AY 2022-23
Section 10(50)Section 143(3)Section 144C(13)

amounting to ₹8,16,73,828/- from Indian distributors on account of granting rights to distribute Acronis software are in the nature of fees for technical services (FTS) under the Act and secondly, both AO and DRP have heard that in law and on facts in not granting the benefit ... Swiss entity, the provisions of the India- Switzerland DTAA would apply. On this basis, the DRP concluded that the receipts constituted fees for technical services taxable in India, as the India-Switzerland DTAA does not contain a “make available" clause. The DRP also rejected the assessee's claim for exemption

Tata Consultancy Services Limited, Mumbai vs. Deputy Commissioner of Incometax 3(4), Mumbai

In the result, appeals of both, revenue and assessee are partly

ITA 1517/MUM/2025[2017-18]Status: DisposedITAT Mumbai30 Dec 2025AY 2017-18

Bench: Shri Pawan Singh & Shri Girish Agrawal

For Appellant: Shri Porus Kaka, Sr. AdvocateFor Respondent: Shri Ajay Chandra, CIT DR
Section 92CSection 92C(3)

IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT

Veritas Storage Singapore Pte Limited, Singapore vs. Deputy Commissioner of Income Tax Circle Int Tax 3(1)(1) Del, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 2026/DEL/2025[2022-23]Status: DisposedITAT Delhi30 Dec 2025AY 2022-23

Bench: Shri Vikas Awasthy & Shri Krinwant Sahay[Assessment Year: 2022-23] Veritas Storage (Singapore) Ptd. Vs. Deputy Commissioner Of Income Ltd. 9 Tamasek Boulevard, Tax, Circle-3(1)(1), Intl. Taxation, 39-01 Suntec Tower Two, Civic Centre, Minto Road, Singapore-038989 New Delhi-110002 Pan :Aafcv2394A (Assessee) (Revenue) Assessee By Shri Tarun Gulati, Sr. Adv. & Shri Nikhil Gupta, Adv. & Shri Prince Nagpal, Adv. Revenue By Srhi M.S. Nethrapal, Cit-Dr Date Of Hearing 30.09.2025 Date Of Pronouncement .12.2025 Order Per Krinwant Sahay, Am:

Section 144C(11)

decisional hearing before raising a new issue. In the draft assessment order, the consideration from the sale of software was treated as Fees for Technical Services (FTS). However, the Ld. DRP, without providing any prior notice or hearing to the Appellant, re-characterized the said consideration as "process royalty

Sms Group Gmbh, Delhi vs. ACIT.Circle-3(1)(2), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 377/DEL/2025[2022-23]Status: DisposedITAT Delhi24 Dec 2025AY 2022-23

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

Receipts from providing technical services The assessee had receipts of Rs. 5,25,70,303/-. These receipts were offered to tax as fee for technical services taxable at 10% as per DTAA between India & Germany. ITA No. 1591-1592/Del/2022 ITA No. 993 & 3297/Del/2023 MS Group Gmbh d) Receipts from ... consideration received for supply of drawings and designs, forming integral part of the supply of equipment, received under various contracts is taxable as 'Fees for Technical Services', u/s 9(1)(vii) of the Act. (b) That the learned A.O. and DRP have misdirected themselves on wrong assumptions of facts

Sms Group Gmbh, New Delhi vs. ACIT, Circle 3(1)(2), International Txation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 993/DEL/2023[2020-21]Status: DisposedITAT Delhi24 Dec 2025AY 2020-21

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

Receipts from providing technical services The assessee had receipts of Rs. 5,25,70,303/-. These receipts were offered to tax as fee for technical services taxable at 10% as per DTAA between India & Germany. ITA No. 1591-1592/Del/2022 ITA No. 993 & 3297/Del/2023 MS Group Gmbh d) Receipts from ... consideration received for supply of drawings and designs, forming integral part of the supply of equipment, received under various contracts is taxable as 'Fees for Technical Services', u/s 9(1)(vii) of the Act. (b) That the learned A.O. and DRP have misdirected themselves on wrong assumptions of facts

Sms Group Gmbh, New Delhi vs. ACIT Circle - 3(1)(2) Intl. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 3297/DEL/2023[2021-22]Status: DisposedITAT Delhi24 Dec 2025AY 2021-22

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

Receipts from providing technical services The assessee had receipts of Rs. 5,25,70,303/-. These receipts were offered to tax as fee for technical services taxable at 10% as per DTAA between India & Germany. ITA No. 1591-1592/Del/2022 ITA No. 993 & 3297/Del/2023 MS Group Gmbh d) Receipts from ... consideration received for supply of drawings and designs, forming integral part of the supply of equipment, received under various contracts is taxable as 'Fees for Technical Services', u/s 9(1)(vii) of the Act. (b) That the learned A.O. and DRP have misdirected themselves on wrong assumptions of facts

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2) Int. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1592/DEL/2022[2018-19]Status: DisposedITAT Delhi24 Dec 2025AY 2018-19

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

Receipts from providing technical services The assessee had receipts of Rs. 5,25,70,303/-. These receipts were offered to tax as fee for technical services taxable at 10% as per DTAA between India & Germany. ITA No. 1591-1592/Del/2022 ITA No. 993 & 3297/Del/2023 MS Group Gmbh d) Receipts from ... consideration received for supply of drawings and designs, forming integral part of the supply of equipment, received under various contracts is taxable as 'Fees for Technical Services', u/s 9(1)(vii) of the Act. (b) That the learned A.O. and DRP have misdirected themselves on wrong assumptions of facts

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2), Int. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1591/DEL/2022[2017-18]Status: DisposedITAT Delhi24 Dec 2025AY 2017-18

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

Receipts from providing technical services The assessee had receipts of Rs. 5,25,70,303/-. These receipts were offered to tax as fee for technical services taxable at 10% as per DTAA between India & Germany. ITA No. 1591-1592/Del/2022 ITA No. 993 & 3297/Del/2023 MS Group Gmbh d) Receipts from ... consideration received for supply of drawings and designs, forming integral part of the supply of equipment, received under various contracts is taxable as 'Fees for Technical Services', u/s 9(1)(vii) of the Act. (b) That the learned A.O. and DRP have misdirected themselves on wrong assumptions of facts

DCIT(It), Circle-1, Pune vs. East West Seeds India Private Limited, Aurangabad

In the result, appeal filed by the Revenue is dismissed

ITA 858/PUN/2025[2020-21]Status: DisposedITAT Pune19 Dec 2025AY 2020-21

Bench: PER DR. DIPAK P. RIPOTE (Accountant Member)

Section 201Section 250Section 9(1)(vii)

given by the Assessing Officer (AO) that payments made by the assessee amounting to Rs. 1,91,82,330/- are in nature of Fees for technical services under the Income tax Act and therefore, taxable under section 9(1)(vii) of the Act. 3. On the facts and circumstances ... Appeals Hortigenetics Research (S E Asia) Limited, is not taxable in India. However, the ITO(IT) held that income received as fees for technical services is nowhere mentioned in the India Thailand DTAA. Therefore, ITO invoked Article 22 of the DTAA and held that said income shall be taxable