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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, International Taxation, Circle-1(1)(1), New Delhi vs. Avnet Asia Pte Ltd, New Delhi

In the result, all the appeals are dismissed

ITA 1287/DEL/2022[2015-16]Status: DisposedITAT Delhi25 Jul 2023AY 2015-16

Bench: Shri G.S. Pannu & Shri Saktijit Dey, Vice-

For Appellant: Sh. Tapas Misra, AdvFor Respondent: Sh. Vizay B. Vasanta, CIT/DR
Section 9(1)(vi)Section 9(1)(vii)

addition made by the A.O. amounting to Rs.94,21,081/- received by assessee company as receipts from Technical services are taxable as Fees for Technical Services u/s 9(1)(vii) of the Income Tax Act, 1961. 2. Whether on facts and circumstances of the case ... Double Taxation Avoidance Agreement (DTAA). Further, the amount received by the assessee towards rendering certain services was treated by the Assessing Officer as fee for technical services (FTS) under section 9(1)(vii) of the Act. He also held that since the services rendered are ancillary and subsidiary

Ac, International Taxation, Circle-1(1)(1), New Delhi vs. Avnet Asia Pte Ltd, New Delhi

In the result, all the appeals are dismissed

ITA 1285/DEL/2022[2014-15]Status: DisposedITAT Delhi25 Jul 2023AY 2014-15

Bench: Shri G.S. Pannu & Shri Saktijit Dey, Vice-

For Appellant: Sh. Tapas Misra, AdvFor Respondent: Sh. Vizay B. Vasanta, CIT/DR
Section 9(1)(vi)Section 9(1)(vii)

addition made by the A.O. amounting to Rs.94,21,081/- received by assessee company as receipts from Technical services are taxable as Fees for Technical Services u/s 9(1)(vii) of the Income Tax Act, 1961. 2. Whether on facts and circumstances of the case ... Double Taxation Avoidance Agreement (DTAA). Further, the amount received by the assessee towards rendering certain services was treated by the Assessing Officer as fee for technical services (FTS) under section 9(1)(vii) of the Act. He also held that since the services rendered are ancillary and subsidiary

ACIT, International Taxation, Circle-1(1)(1), New Delhi vs. Avnet Asia Pte Ltd, New Delhi

In the result, all the appeals are dismissed

ITA 1284/DEL/2022[2017-18]Status: DisposedITAT Delhi25 Jul 2023AY 2017-18

Bench: Shri G.S. Pannu & Shri Saktijit Dey, Vice-

For Appellant: Sh. Tapas Misra, AdvFor Respondent: Sh. Vizay B. Vasanta, CIT/DR
Section 9(1)(vi)Section 9(1)(vii)

addition made by the A.O. amounting to Rs.94,21,081/- received by assessee company as receipts from Technical services are taxable as Fees for Technical Services u/s 9(1)(vii) of the Income Tax Act, 1961. 2. Whether on facts and circumstances of the case ... Double Taxation Avoidance Agreement (DTAA). Further, the amount received by the assessee towards rendering certain services was treated by the Assessing Officer as fee for technical services (FTS) under section 9(1)(vii) of the Act. He also held that since the services rendered are ancillary and subsidiary

ACIT, International Taxation, Circle-1(1)(1), New Delhi vs. Avnet Asia Pte Ltd, Singapore

In the result, all the appeals are dismissed

ITA 1282/DEL/2022[2013-14]Status: DisposedITAT Delhi25 Jul 2023AY 2013-14

Bench: Shri G.S. Pannu & Shri Saktijit Dey, Vice-

For Appellant: Sh. Tapas Misra, AdvFor Respondent: Sh. Vizay B. Vasanta, CIT/DR
Section 9(1)(vi)Section 9(1)(vii)

addition made by the A.O. amounting to Rs.94,21,081/- received by assessee company as receipts from Technical services are taxable as Fees for Technical Services u/s 9(1)(vii) of the Income Tax Act, 1961. 2. Whether on facts and circumstances of the case ... Double Taxation Avoidance Agreement (DTAA). Further, the amount received by the assessee towards rendering certain services was treated by the Assessing Officer as fee for technical services (FTS) under section 9(1)(vii) of the Act. He also held that since the services rendered are ancillary and subsidiary

ACIT, New Delhi vs. M/S Alnoor Exports, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4595/DEL/2015[2011-12]Status: DisposedITAT Delhi25 Jul 2023AY 2011-12

Bench: Shri Challa Nagendra Prasad & Dr. B.R.R. Kumarआ.अ.सं/.I.T.A No. 4595/Del/2015 िनधा"रणवष"/Assessment Year: 2011-12 Acit, M/S. Alnoor Exports, बनाम C/O. M/S. Rohit Malik & Vs. Associates, Circle : 32 (1) 1403, Chiranjeev Tower, New Delhi. 43 - Nehru Place, New Delhi – 110 019. Pan No. Aacfa2599N अपीलाथ"/ Appellant ""यथ"/ Respondent

For Appellant: Advocate
Section 195

commission paid by the assessee to its foreign agents for arranging of export sales and recovery of payments could not be regarded as fees for technical services under section 9(1)(vii) of the Act. Reliance was also placed on the decision of the Hon’ble Delhi High Court ... covered u/s 9 of the Act and guilty Section 195 of the Act does not come into play as it is not a Fee the Technical Service. "The decision of the Supreme Court in Transmission Corporation of AP. Lad me referred by the assessing officer is not applicable

Relx Inc, Gurgaon vs. ITO Ward International Taxation-3(1)(2), Delhi

In the result, the appeal of the assessee is allowed

ITA 1085/DEL/2022[2017-18]Status: DisposedITAT Delhi24 Jul 2023AY 2017-18

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2017-18

For Appellant: Shri Ravi Sharma, AdvocateFor Respondent: Shri Vizay Basanta, CIT- DR
Section 142(1)Section 143(2)Section 143(3)Section 263Section 9Section 9(1)(vii)

make an addition of the subscription receipts of INR 5,56,79,800 received from its Indian customers by treating it as Fees for Technical Services (‘FTS’) as per the provisions of section 9(i)(vii) of the Income-tax Act, 1961 (the Act) without appreciating that there ... through extensive enquiry/verification has ascertained that the receipts are taxable in the hands of the assessee as Fee for Technical Services (“FTS”)/Fee for Included Services (“FIS”) under section 9(1)(vii) of the Act and Article 12 of India-USA DTAA. Since the facts

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

In the result, assessee’s appeals being ITA no

ITA 2260/DEL/2022[2019-20]Status: DisposedITAT Delhi19 Jul 2023AY 2019-20

Bench: Shri Shamim Yahya & Shri Kul Bharat[A.Y.: 2018-19] & [A.Y.: 2019-20]

Section 143(3)Section 144C(13)Section 270A

segment. 1.2 The income of the assessee, taxable in India for the relevant year, primarily consists of 'Income from Royalty and Fees for technical services (FTS)' and 'Business Income'. 1.3 Income from Royalty and Fees for technical services comprises of 1.4 Business Income comprises of income from various projects under

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

In the result, assessee’s appeals being ITA no

ITA 2259/DEL/2022[2018-19]Status: DisposedITAT Delhi19 Jul 2023AY 2018-19

Bench: Shri Shamim Yahya & Shri Kul Bharat[A.Y.: 2018-19] & [A.Y.: 2019-20]

Section 143(3)Section 144C(13)Section 270A

segment. 1.2 The income of the assessee, taxable in India for the relevant year, primarily consists of 'Income from Royalty and Fees for technical services (FTS)' and 'Business Income'. 1.3 Income from Royalty and Fees for technical services comprises of 1.4 Business Income comprises of income from various projects under

Michael Graves Design Group Inc., Usa vs. DCIT, Circle- 2(2)(1), Intl. Taxation, New Delhi

In the result, the appeals of the assessee for both the AYs i

ITA 6007/DEL/2018[2015-16]Status: DisposedITAT Delhi18 Jul 2023AY 2015-16

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2014-15 & Asstt. Year: 2015-16

For Appellant: Shri Niraj Seth, Advocate &For Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 143(3)

appellant respectfully submits that having regard to the provisions of section 115A, the tax rate on the income in the nature of 'fees for technical services shall be 10% as may be increased by the amount of surcharge and education cess. C. The appellant respectfully submits that the amount ... source. The AO issued notice u/s.201 of the Act on the premise that payments made by assessee to overseas company were 'fees for technical services and hence the income is chargeable to tax in India u/s.9(l)(vii) of the Act. The assessee carried the matter appeal

Michael Graves Design Group Inc., Usa vs. DCIT, Circle- 2(2)(1), Intl. Taxation, New Delhi

In the result, the appeals of the assessee for both the AYs i

ITA 7683/DEL/2017[2014-15]Status: DisposedITAT Delhi18 Jul 2023AY 2014-15

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2014-15 & Asstt. Year: 2015-16

For Appellant: Shri Niraj Seth, Advocate &For Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 143(3)

appellant respectfully submits that having regard to the provisions of section 115A, the tax rate on the income in the nature of 'fees for technical services shall be 10% as may be increased by the amount of surcharge and education cess. C. The appellant respectfully submits that the amount ... source. The AO issued notice u/s.201 of the Act on the premise that payments made by assessee to overseas company were 'fees for technical services and hence the income is chargeable to tax in India u/s.9(l)(vii) of the Act. The assessee carried the matter appeal

Assistant Commissioner of Income Tax, (Central)-I, Raipur vs. Mesers Chhattisgarh Steel & Power Limited, Raipur

In the result, appeal of the revenue in ITA No

ITA 92/RPR/2020[2013-14]Status: DisposedITAT Raipur18 Jul 2023AY 2013-14

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं./Ita Nos.91 & 92/Rpr/2020 "नधा"रण वष" / Assessment Years : 2012-13 & 2013-14 The Assistant Commissioner Of Income Tax, Central Circle-1, Raipur (C.G.) .......अपीलाथ" / Appellant बनाम / V/S. M/S. Chhattisgarh Steel & Power Limited. 142, Sahid Smarak, G.E Road, Raipur (C.G.) Pan : Aaccc7479G ……""यथ" / Respondent

For Appellant: Ms. Puja Bajaj, CAFor Respondent: Shri Piyush Tripathi, Sr. DR
Section 143(2)Section 143(3)Section 14ASection 40

reported in 58 taxmann.com 339 the Hon'ble High Court of Bombay held that the wheeling charges would neither be rent nor fees for technical services. The SLP preferred against the impugned decision of the Hon'ble Bombay High Court with respect to wheeling charges being tax deductible payments ... furniture, fitting etc. and therefore, could not be brought within the meaning of rent. Equally, it was observed that the payments were not fees for technical services. It was also held by the Hon’ble High Court that the expression of Transmission charges and/or Wheeling charges entails distribution of electricity

Assistant Commissioner of Income Tax (Central)-I, Raipur vs. Mesers Chhattisgarh Steel & Power Limited, Raipur

In the result, appeal of the revenue in ITA No

ITA 91/RPR/2020[2012-13]Status: DisposedITAT Raipur18 Jul 2023AY 2012-13

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं./Ita Nos.91 & 92/Rpr/2020 "नधा"रण वष" / Assessment Years : 2012-13 & 2013-14 The Assistant Commissioner Of Income Tax, Central Circle-1, Raipur (C.G.) .......अपीलाथ" / Appellant बनाम / V/S. M/S. Chhattisgarh Steel & Power Limited. 142, Sahid Smarak, G.E Road, Raipur (C.G.) Pan : Aaccc7479G ……""यथ" / Respondent

For Appellant: Ms. Puja Bajaj, CAFor Respondent: Shri Piyush Tripathi, Sr. DR
Section 143(2)Section 143(3)Section 14ASection 40

reported in 58 taxmann.com 339 the Hon'ble High Court of Bombay held that the wheeling charges would neither be rent nor fees for technical services. The SLP preferred against the impugned decision of the Hon'ble Bombay High Court with respect to wheeling charges being tax deductible payments ... furniture, fitting etc. and therefore, could not be brought within the meaning of rent. Equally, it was observed that the payments were not fees for technical services. It was also held by the Hon’ble High Court that the expression of Transmission charges and/or Wheeling charges entails distribution of electricity

Planetcast International Pte.Ltd, Singapure vs. ACIT, Circle1(1)(1) International Taxation, Delhi

In the result, appeal is partly allowed

ITA 1832/DEL/2022[2019-20]Status: DisposedITAT Delhi14 Jul 2023AY 2019-20

Bench: Shri Saktijit Dey, Vice- & Shri Dr. B.R.R. Kumar

For Appellant: Sh. Ajay Vohra, Sr. Advocate &For Respondent: Sh. Vizaya Vasanta, CIT-DR
Section 143(3)Section 144C(13)Section 9(1)(vi)

assessee has challenged the taxability of receipts from provision of disaster recovery up-linking services and disaster recovery play-out services as fee for technical services (FTS) under section 9(1)(vii) of the Act and Article 12(4) of India-Singapore DTAA. Without prejudice to the addition made ... contained therein. ITA Nos. 1831, 1832/Del/2022 & 451/Del/2023 24 35. We find that the terms ‘managerial’, ‘technical’ and ‘consultancy’ appearing in the definition of ‘fees for technical services’ have not been specifically defined in the treaty and the Act. In our understanding, Managerial service signifies a service for management of affairs

Buro Happold Limited, Mumbai vs. Deputy Commissioner of Income Tax, International Taxation-1(3)(2), Mumbai

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

ITA 1006/MUM/2023[2020-2021]Status: DisposedITAT Mumbai13 Jul 2023AY 2020-2021

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Bleburo Happold Limited V. Acit (International Tax) C/O. Sudit K. Parekh & Co. Llp Circle – 1(3)(2) Urmi Estate – Tower A, 20Th Floor Room No. 1810, 18Th Floor 95, Ganpatrao Kadam Marg Air India Building Nariman Point, Mumbai – 400 021 Lower Parel (W), Mumbai – 400013 Pan: Aabcb9239Q (Appellant) (Respondent)

Section 144C(5)Section 234BSection 90(2)

Assessee has raised following grounds in its appeal: - “1. Ground No. 1 - Taxability of amount received for Consulting and Engineering services as Fees for technical services (FTS) 1.1 On the facts and in the circumstances of the case and in law, the learned DRP (Dispute Resolution Panel") and DCIT have ... erred in considering income from consulting and engineering services amounting to INR 1,04,76,328/- as Fees for technical services (FTS) as per Article 13 of India-UK Double Taxation Avoidance Agreement (DTAA"). 2. Ground No. II Taxability of amount received as management fees & common cost recharge as Royalty

Reliance Commercial Dealers Ltd., Mumbai vs. CIT (A)-58, Mumbai

In the result, both the appeals of the assessee are allowed

ITA 7828/MUM/2019[2016-17]Status: DisposedITAT Mumbai10 Jul 2023AY 2016-17
Section 115ASection 195Section 195ASection 206ASection 248Section 90

extent they are more beneficial to the assessee. In terms of section 115A of the Act, any income in the nature of "fees for technical services" is taxable in India @ 10% (plus applicable surcharge & education cess) and the grossed up rate u/s.195A would work out to 11.48%. Accordingly, the assessee

Reliance Commercial Dealers Ltd., Mumbai vs. CIT (A)-58, Mumbai

In the result, both the appeals of the assessee are allowed

ITA 7827/MUM/2019[2016-17]Status: DisposedITAT Mumbai10 Jul 2023AY 2016-17
Section 115ASection 195Section 195ASection 206ASection 248Section 90

extent they are more beneficial to the assessee. In terms of section 115A of the Act, any income in the nature of "fees for technical services" is taxable in India @ 10% (plus applicable surcharge & education cess) and the grossed up rate u/s.195A would work out to 11.48%. Accordingly, the assessee

DCIT Circle-1(1)(1), International Taxation, New Delhi vs. Aedas Pte. Ltd., Singapore

In the result, appeal of the Revenue is dismissed

ITA 716/DEL/2020[2015-16]Status: DisposedITAT Delhi10 Jul 2023AY 2015-16

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2015-16 Dcit, Circle-1(1)(1), Vs. Aedas Pte. Ltd. International Taxation, 11-01, Keppel Towers, New Delhi. 10 Hoe Chiang Road, Singapore, Sg 089315, Foreign Singapore. Pan Aaica4878K (Appellant) (Respondent)

For Appellant: Shri Deepak Chopra, Advocate &For Respondent: Shri Vizay Vasanta, CIT- DR
Section 143(2)Section 144C(3)Section 9(1)(vii)

proceedings, the assessee was show caused as to why the payment received in lieu of architectural design services should not be taxed as Fees for Technical Services (“FTS”) and/or royalty in terms of Article 12 of the Double Taxation Avoidance Agreement between India and Singapore (“India-Singapore DTAA”). In response ... Singapore DTAA, services that do not enable the person acquiring them to apply the technology contained therein are excluded from the ambit of “Fees for Technical Services”. ix) That there is a distinction between imparting conclusions vis-a- vis imparting ‘Knowledge’ and it is important to distinguish the same

Sushil Kumar Agrawal, Korba vs. Deputy Commmissioner of Income Tax, Circle, Korba

In the result, appeal of the assessee is partly allowed for statistical purposes in terms of our aforesaid observations

ITA 148/RPR/2018[2012-13]Status: DisposedITAT Raipur10 Jul 2023AY 2012-13

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं./Ita No.148/Rpr/2018 "नधा"रण वष" / Assessment Year : 2012-13 Shri Sushil Kumar Agrawal, Prop. Of M/S. Shrikishan & Co., Darri Road, Korba (C.G.) Pan : Acgpa4350B .......अपीलाथ" / Appellant बनाम / V/S. The Deputy Commissioner Of Income Tax Circle-Korba (C.G.) ……""यथ" / Respondent

For Appellant: Shri Y.K Mishra, AdvocateFor Respondent: Shri Choudhary N.C. Roy, Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 40Section 68

profession”,- (a) in the case of any assessee- *** *** *** (ia) any interest, commission or brokerage, rent, royalty 14, 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 ... business or profession”,- (a) in the case of any assessee- *** *** *** (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

Spi Global Us Inc, Puducherry vs. ACIT, Circle-3(1)(2), International Taxation, New Delhi

In the result, appeal of the assessee is allowed

ITA 1662/DEL/2022[2019-20]Status: DisposedITAT Delhi07 Jul 2023AY 2019-20

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2019-20

For Appellant: Shri Ashik Shah, AdvocateFor Respondent: Shri Vizay Vasanta, CIT- DR
Section 143(3)

Trib) 449 (Delhi), Delhi Bench of the Tribunal pointed out that the expression “make available” in the context of ‘fees for technical services’ contemplates that the technical services should be of such a nature, that the payer comes to possess the technical knowledge so provided which enables it to utilize

DCIT, CC-01, New Delhi vs. Spicejet Ltd., Gurgaon

In the result, appeal of the assessee for AY 2011-12 is partly

ITA 883/DEL/2022[2016-17]Status: DisposedITAT Delhi05 Jul 2023AY 2016-17

Bench: Shri Narendra Kumar Billaiya & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.5181/Del/2016 िनधा"रणवष"/Assessment Year:2011-12 बनाम Spice Jet Limited, Addl. Cit 319, Udyog Vihar, Phase-Iv, Vs. Range-9, Gurgaon, Haryana. New Delhi. Pan No. Aaccr1459F अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.5153/Del/2016 िनधा"रणवष"/Assessment Year:2011-12 बनाम Acit Spice Jet Ltd., Circle-24(1), Vs. 319, Udyog Vihar, Phase-Iv, Room No.163, Gurgaon, Haryana. C.R. Building, New Delhi. Pan No. Aaccr1459F अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.879/Del/2022 िनधा"रणवष"/Assessment Year:2012-13 बनाम Dcit Spice Jet Ltd., Central Circle-01, Vs. 319, Udyog Vihar, Phase-Iv, Room No.334, E-2, Gurgaon, Haryana. Ara Centre, Jhandewalan Extension, New Delhi. Pan No. Aaccr1459F अपीलाथ" Appellant ""यथ"/Respondent

Section 115J

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. 2. Contracting ... 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