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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

Asstt. CIT(It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1094/MUM/2021[2019-20]Status: DisposedITAT Mumbai24 Feb 2022AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Asstt. CIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1093/MUM/2021[2019-20]Status: DisposedITAT Mumbai24 Feb 2022AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Asstt. CIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1092/MUM/2021[2019-20]Status: DisposedITAT Mumbai24 Feb 2022AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Asstt. CIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1091/MUM/2021[2019-20]Status: DisposedITAT Mumbai24 Feb 2022AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Asstt. CIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1090/MUM/2021[2019-20]Status: DisposedITAT Mumbai24 Feb 2022AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Asstt. CIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1089/MUM/2021[2019-20]Status: DisposedITAT Mumbai24 Feb 2022AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Asstt. CIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1088/MUM/2021[2019-20]Status: DisposedITAT Mumbai24 Feb 2022AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Asstt. CIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd, Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 1067/MUM/2021[2020-21]Status: DisposedITAT Mumbai24 Feb 2022AY 2020-21

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Nimesh Vora, ARFor Respondent: Shri Milind S. Chavan, SR DR
Section 195Section 9

contracting state in which they arise and according to the laws of that state, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties

Sabmiller India Ltd, Mumbai vs. ACIT Cir 11(1)(2), Mumbai

In the result, appeal of the assessee in ITA No

ITA 7157/MUM/2017[2013-14]Status: DisposedITAT Mumbai24 Feb 2022AY 2013-14
Section 143(3)Section 144C(5)

Business Advisory Services, Corporate Affairs, Marketing, Technical Consulting, Computer Advisory Services and Data Processing and Intellectual Property Services are in the nature of “Fees for Technical Services”, within the meaning of the term in Article–12 of the DTAA between India and the Netherlands. 2. The amount receivable

Renaissance Services Bv, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, appeal of the assessee for A

ITA 5677/MUM/2016[2010-11]Status: DisposedITAT Mumbai24 Feb 2022AY 2010-11
Section 143(3)

Training and Computer Systems Agreement ('TCSA') on account of conducting core managerial training programs for managerial employees of the Indian hotels qualify as 'fees for technical services' under Article 12(5)(a) of the India- Netherlands tax treaty. 2. In holding that conducting core managerial training programs for managerial employees ... response to show- cause notice. The ld. AO treated the income received by the assessee from training services to be taxable as fee for technical services (FTS) u/s.9(1)(vi) of the Act and also under Article 12 of the Indo- Netherlands Double Taxation Avoidance Agreement (DTAA). In respect

M/S Nds Limited, Bangalore vs. Deputy Commissioner of Income Tax International Taxation Circle-1(2), Bangalore

In the result, assessee’s appeal is partly allowed

ITA 3350/BANG/2018[2014-15]Status: DisposedITAT Bangalore14 Feb 2022AY 2014-15

Bench: Shri George George K & Ms. Padmavathy Sassessment Year : 2014-15

For Appellant: Shri Sharath Rao, AdvocateFor Respondent: Shri Muzaffar Hussain, CIT(DR)
Section 133(6)Section 143(2)Section 143(3)Section 234ASection 234B

erred in law and in fact, in treating the receipts on account of rendering of support services to be in the nature of 'Fees for Technical Services as defined under the provisions of the Act read with the DTAA. 4. The learned AO/DRP has erred in law and in fact ... software thereby is a ‘royalty (iii) Whether the AO is right in treating the receipts on account of provision of support services as ‘fees for technical services (FTS)’ 6. The Ld.AR submitted that the issues raised above for the current assessment year is covered by the decision of co-ordinate

M/S Wipro Limited, Bangalore vs. The Deputy Commissioner of Income Tax Circle-7(1)(2), Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 2681/BANG/2018[2006-07]Status: DisposedITAT Bangalore09 Feb 2022AY 2006-07

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2006-07

For Appellant: Shri Sandeep Huilgul, A.RFor Respondent: Smt. Priyadarshini Basaganni, D.R
Section 143(1)Section 147Section 148Section 195Section 40

Tool kit inspection charges etc. Rs. 2,05,246/- The AO took the view that these payments fall under the category of Fee for technical services and accordingly took the view that the assessee should have deducted at source from these payments. M/s. Wipro Limited, Bangalore Page ... inspection charges, etc. The assessee further explained that, as per DTAA entered between India and Singapore, the above said payment shall not constitute fee for technical services. The definition of fee for technical services is given as under, under India - Singapore DTAA:- “The term “fees for technical services” as used

DCIT (International Taxation), New Delhi vs. M/S. Dhv B.V, New Delhi

In the result, the appeal is dismissed

ITA 2834/DEL/2017[2012-13]Status: DisposedITAT Delhi08 Feb 2022AY 2012-13

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2012-13

Section 44D

were taxed at gross basis. Therefore, he called upon the assessee to explain, why the receipts from India should not be taxed as fees for technical services (FTS), that too, at gross basis like in the earlier assessment years. Though, the assessee objected to the proposed action of the Assessing

M/S. Interglobe Aviation Ltd., Gurgaon vs. Addl. CIT, New Delhi

ITA 749/DEL/2016[2008-09]Status: DisposedITAT Delhi07 Feb 2022AY 2008-09
Section 10Section 254(2)Section 40

drew our attention to the relevant provision of DTAA between India and Ireland (Article 12) which are as under :- “1. Royalty 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 not exceed 10 per cent of the gross amount of the royalties or fees for technical services

Addl. CIT, Special Range- 4, New Delhi vs. Interglobe Aviation Ltd., New Delhi

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

ITA 3428/DEL/2018[2014-15]Status: DisposedITAT Delhi04 Feb 2022AY 2014-15

Bench: Shri G.S.Pannu & Shri Kul Bharat

Section 10Section 154Section 40

application of the Article - 12 of the DTAA with Ireland is concerned, it only provides that if any royalty or fees for technical services is paid for use of the aircraft, the provision of TDS is not attracted but a plain reading of Article - 12 shows clearly that supplementary lease

Addl. CIT, Special Range- 4, New Delhi vs. Interglobe Aviation Ltd., New Delhi

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

ITA 3427/DEL/2018[2013-14]Status: DisposedITAT Delhi04 Feb 2022AY 2013-14

Bench: Shri G.S.Pannu & Shri Kul Bharat

Section 10Section 154Section 40

application of the Article - 12 of the DTAA with Ireland is concerned, it only provides that if any royalty or fees for technical services is paid for use of the aircraft, the provision of TDS is not attracted but a plain reading of Article - 12 shows clearly that supplementary lease

DCIT, New Delhi vs. M/S. Jagson International Ltd., New Delhi

In the result, ITA.No.276/Del

ITA 276/DEL/2017[2014-15]Status: DisposedITAT Delhi31 Jan 2022AY 2014-15

Bench: Shri R.K. Panda & Shri Narendra Kumar Choudhary

For Appellant: Shri Rahul PrabhakarFor Respondent: Shri P.C. Maurya, CIT
Section 115JSection 14A

used for the shipping operations and these personnel meet the stringent requirements and standards set by the ONGC. Undoubtedly the payments amount to fees for technical services which are ordinarily taxable under the provisions of section 9(l)(vii). In this view of the matter, the income accrued

DCIT, New Delhi vs. M/S. Jagson International Ltd., New Delhi

In the result, ITA.No.276/Del

ITA 1002/DEL/2016[2013-14]Status: DisposedITAT Delhi31 Jan 2022AY 2013-14

Bench: Shri R.K. Panda & Shri Narendra Kumar Choudhary

For Appellant: Shri Rahul PrabhakarFor Respondent: Shri P.C. Maurya, CIT
Section 115JSection 14A

used for the shipping operations and these personnel meet the stringent requirements and standards set by the ONGC. Undoubtedly the payments amount to fees for technical services which are ordinarily taxable under the provisions of section 9(l)(vii). In this view of the matter, the income accrued

DCIT, New Delhi vs. M/S. Jagson International Ltd., New Delhi

In the result, ITA.No.276/Del

ITA 1001/DEL/2016[2012-13]Status: DisposedITAT Delhi31 Jan 2022AY 2012-13

Bench: Shri R.K. Panda & Shri Narendra Kumar Choudhary

For Appellant: Shri Rahul PrabhakarFor Respondent: Shri P.C. Maurya, CIT
Section 115JSection 14A

used for the shipping operations and these personnel meet the stringent requirements and standards set by the ONGC. Undoubtedly the payments amount to fees for technical services which are ordinarily taxable under the provisions of section 9(l)(vii). In this view of the matter, the income accrued

ACIT (It)-4(3)(1), Mumbai vs. M/S. Viacom 18 Media P. Ltd., Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 523/MUM/2021[2015-16]Status: DisposedITAT Mumbai20 Jan 2022AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Pavan Kumar Gadale ()

Section 195Section 195(2)Section 9Section 9(1)(vi)

arising in a Contracting State and paid to a resident of the other Contracting State may be beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed: (a) in the case of royalties within paragraph ... this Articles, and fees for technical services within paragraphs 4(a) and (c) of this Article,— (i) during the first five years for which this Convention has effect; (aa) 15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties