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“fees for included services”

International TaxDTAA FTS ArticleDTAA FTS Article385 judgments

The decision most relied on for fees for included services is CIT v. De Beers India Minerals (P.) Ltd. (346 ITR 467), cited in 371 judgments on BharatTax.

Leading authorities on fees for included services

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.

Asia Satellite Telecommunications Co. Ltd. v. DIT
332 ITR 340 · 2011 · High Court
359
citing judgments

Payments for the use of equipment, such as satellite transponders, do not constitute 'royalty' under Section 9(1)(vi) of the Income-tax Act, 1961, or under applicable tax treaties, especially when there is no transfer of the right to use a process or underlying technology.

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.

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.

CIT v. Kotak Securities Ltd.
383 ITR 1 · 2016 · Supreme Court
203
citing judgments

Fees for technical services under Section 9(1)(vii) can include payments for fully automated services even without direct human interface, as modern technological developments blur the specific human element in such processes.

Raymond Ltd. v. Dy. CIT
86 ITD 791 · 2003 · ITAT
154
citing judgments

For services to qualify as 'Fees for Technical Services' or 'Fees for Included Services' under Double Taxation Avoidance Agreements (DTAAs), they must 'make available' technical knowledge, experience, skill, or processes to the recipient, enabling them to apply such expertise independently.

EPRSS Prepaid Recharge Services India Pvt.Ltd. v. ITO
100 Taxmann.com 52 · 2018 · Reported
101
citing judgments

Payments made for the use of cloud space do not constitute royalty payments for the purpose of Indian income tax, especially when they relate to accessing standard and automated services rather than acquiring rights to copyrighted material.

Steria (India) Ltd. v. CIT
386 ITR 390 · 2016 · High Court
83
citing judgments

Managerial services are not considered 'fees for included services' under Article 13(4) of the India-UK Double Taxation Avoidance Agreement, thus payments for such services are not taxable as FTS under the treaty.

Judgments citing fees for included services

Cma Cgm Agencies India Private Limited, Elphinstone Road-West, Mumbai vs. Deputy Commissioner of Income Tax, Circle 1(1), Pune

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

ITA 1454/PUN/2023[2013-14]Status: DisposedITAT Pune22 Aug 2024AY 2013-14

Bench: Shri G. D. Padmahshali & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1454/Pun/2023 िनधा"रण वष" / Assessment Year : 2013-14 Cma Cgm Agencies India Vs. Dcit, Circle-1(1), Pune. Private Limited, One International Centre, Tower-3, 8Th Floor, Senapati Bapat Marg, Elphistone Road- West, Mumbai- 400013. Pan : Aadcc3951G Appellant Respondent Assessee By : Mahenov Thakkar Revenue By : Shri Nitin Patil Date Of Hearing : 24.07.2024 Date Of Pronouncement : 22.08.2024 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 03.11.2023 Passed By Ld Cit(A)/Nfac For The Assessment Year 2013-14. 2. The Appellant Raised The Following Grounds Of Appeal :- “Disallowance Under Section 40(A)(Ia) Of The Act Amounting To Rs.4,86,77,518/- 1. Erred In Upholding The Action Of The Learned Assessing Officer (‘Ao’) & Holding That Payment Of It Services To Be In The Nature Of Royalty Under Section 9(1)(Vi) Of The Act/ Fees For Technical Services Under Section 9(1)(Vii) Of The Act;

For Appellant: Mahenov ThakkarFor Respondent: Shri Nitin Patil
Section 143(2)Section 143(3)Section 194JSection 195Section 271(1)(c)Section 40Section 9(1)(vi)Section 9(1)(vii)

ancillary to the enjoyment of right, property or information as per para 3 are availed that they will fall within the ambit of `fees for included services’. Para 3, in turn, defines the term ‘Royalties’ to mean : `payments of any kind received as a consideration

John Wiley and Sons, Inc., U. S vs. DCIT Circle 2(1)(2), International Taxation, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2344/DEL/2023[2020-21]Status: DisposedITAT Delhi21 Aug 2024AY 2020-21

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Pareek

For Appellant: Sh. Vishal Kalra, Adv. &For Respondent: Sh. Vijay B. Vasanta, CIT-DR
Section 143(3)Section 144C(13)Section 270ASection 9(1)(vi)Section 9(1)(vii)

received by the Appellant for sale of online journals or books constitutes Fees for Technical Services (“FTS”) /' Fees for Included Services (“FIS”) under section 9(1)(vii) of the Act read with Article 12 of India-USA tax treaty. 3.1. That on the facts and in circumstances of the case ... passed draft assessment order dated September 30, 2022 proposing to treat the receipts of Rs.16.12 Cr. from Indian customers as Royalty and Fees for Included Services 4 John Wiley and Sons Inc. (“FIS”) / Fee for Technical Services (“FTS”) as per the provisions of the Act read with Article

Ernst and Young U.S. LLP, United States vs. ACIT, Circle International Tax 1(2)(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 3253/DEL/2023[2021-22]Status: DisposedITAT Delhi07 Aug 2024AY 2021-22

Bench: Dr. B. R. R. Kumar, Ms. Madhumita Roy

For Appellant: Sh. S. Ganesh, Sr. Adv. &For Respondent: Sh. Vivek Vardhan, Sr. DR
Section 143(3)Section 144CSection 192

deduction of tax at source. Grounds challenging addition on account of income from professional services governed by Article 15 of the DTAA as “Fees for Included Services” under Article 12 of the DTAA Ground 3.1: That on the facts and in the circumstances of the case ... erred in making addition of income from professional services amounting to INR 30,73,50,907 as Fees for included services (‘FIS’) under Article 12 of the DTAA on the erroneous premise that such services do not qualify as “professional services” as per Article 15 of the DTAA. Ground

Deputy Commissioner Income Tax, Circle-3(1)(1), Benglauru, Bengaluru vs. Goldman Sachs Services Pvt Ltd, Bengaluru

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 1242/BANG/2024[2013-14]Status: DisposedITAT Bangalore06 Aug 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Keshav Dubey

For Appellant: Sri Sharat Rao, A.RFor Respondent: Ms. Neera Malhotra, D.R
Section 195Section 201(1)Section 40Section 9(1)(vii)

appreciating that the AO has rightly considered the reimbursements paid the assessee to the AE are also taxable as FTS or as Fees for included services (FTS) under DTAA between India and USA/UK and hence disallowed the said reimbursements u/s 40(a)(i) of the Act for non-deduction ... Article 12(4)-(5) of India USA, DTAA deals with "Fees for technical services', as under : "4. For purposes of this Article, "fees for included services" means payments of any kind to any person in consideration for the rendering of ITA Nos.1241 & 1242/Bang/2024 M/s. Goldman Sachs Services Pvt. Ltd., Bangalore

Deputy Commissioner of Income Tax, Circle-3(1)(1), Bengaluru vs. Goldman Sachs Services Pvt. Ltd, Bengaluru

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 1241/BANG/2024[2011-12]Status: DisposedITAT Bangalore06 Aug 2024AY 2011-12

Bench: Shri Chandra Poojari & Shri Keshav Dubey

For Appellant: Sri Sharat Rao, A.RFor Respondent: Ms. Neera Malhotra, D.R
Section 195Section 201(1)Section 40Section 9(1)(vii)

appreciating that the AO has rightly considered the reimbursements paid the assessee to the AE are also taxable as FTS or as Fees for included services (FTS) under DTAA between India and USA/UK and hence disallowed the said reimbursements u/s 40(a)(i) of the Act for non-deduction ... Article 12(4)-(5) of India USA, DTAA deals with "Fees for technical services', as under : "4. For purposes of this Article, "fees for included services" means payments of any kind to any person in consideration for the rendering of ITA Nos.1241 & 1242/Bang/2024 M/s. Goldman Sachs Services Pvt. Ltd., Bangalore

Qai India Ltd., New Delhi vs. DCIT, Circle-14(1), New Delhi

In the result, the appeals of the assessee are allowed

ITA 3999/DEL/2017[2012-13]Status: DisposedITAT Delhi05 Aug 2024AY 2012-13

Bench: Dr. B. R. R. Kumar, Ms. Madhumita Roy

For Appellant: Sh. Ved Jain Adv. &For Respondent: Sh. Saurabh Anand, Sr. DR
Section 192Section 195Section 251(1)(a)Section 40Section 9(1)(vii)

made to The APM Group is disallowed u/s 40(a)(i) of the Act. 34. Article 12 of the DTAA with USA defines Fee for Included Services which is also reproduced below: “4. For purposes of this Article, "fees for included services" means payments of any kind to any person ... experience, skill, know-how, or processes, or consist of the development and transfer of a technical plan or technical design. Notwithstanding paragraph 4, "fees for included services" does not include amounts paid: (a) for services that are ancillary and subsidiary, as well as inextricably and essentially linked, to the sale

Qai India Ltd., New Delhi vs. DCIT, Circle-14(1), New Delhi

In the result, the appeals of the assessee are allowed

ITA 3998/DEL/2017[2011-12]Status: DisposedITAT Delhi05 Aug 2024AY 2011-12

Bench: Dr. B. R. R. Kumar, Ms. Madhumita Roy

For Appellant: Sh. Ved Jain Adv. &For Respondent: Sh. Saurabh Anand, Sr. DR
Section 192Section 195Section 251(1)(a)Section 40Section 9(1)(vii)

made to The APM Group is disallowed u/s 40(a)(i) of the Act. 34. Article 12 of the DTAA with USA defines Fee for Included Services which is also reproduced below: “4. For purposes of this Article, "fees for included services" means payments of any kind to any person ... experience, skill, know-how, or processes, or consist of the development and transfer of a technical plan or technical design. Notwithstanding paragraph 4, "fees for included services" does not include amounts paid: (a) for services that are ancillary and subsidiary, as well as inextricably and essentially linked, to the sale

Korn Ferry (Us), California vs. ACIT, Circle 2(1)(2), International Taxation, New Delhi

In the result, the appeal of the assessee is allowed and the Stay Application of the assessee is dismissed

ITA 2393/DEL/2023[2020-21]Status: DisposedITAT Delhi29 Jul 2024AY 2020-21

Bench: Dr. B. R. R. Kumar, Sh. Anubhav Sharma

For Appellant: Sh. Deepak Chopra, Adv. &For Respondent: Sh. Vizay B. Vasanta, CIT-DR
Section 143(3)Section 234BSection 270ASection 274Section 9(1)(vi)Section 9(1)(vii)

bringing to tax the receipts of INR 7,18,00,010, received as consultancy and training fees, as being in the nature of Fees for Included Services ('FIS') under Article 12 of the India-USA Double Taxation Avoidance Agreement (DTAA) read with section ... Korn Ferry (US) 14. The relevant extract of India-USA DTAA is as under: Article 12 of India-USA DTAA on "Royalties and Fees for Included Services" For purposes of this Article, "fees for included services" means payments of any kind to any person in consideration for the rendering

Wild West Domains, Llc, Gurgaon vs. ACIT, Circle-3(1)(1), Int. Tax., New Delhi

ITA 1774/DEL/2022[2019-20]Status: DisposedITAT Delhi29 Jul 2024AY 2019-20

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.1774/Del/2022 िनधा"रणवष"/Assessment Year: 2019-20 बनाम Wild West Domains, Llc Acit, Go Daddy India Domains & Hosting Vs. Circle-3(1)(1), Int. Services Private Limited, First Floor, Taxation, 01A167, Wework Bristol Chowk, Civic Centre, Platina Tower, Mg Road, Sector-28, Minto Road, Gurgaon, Haryana. Newdelhi. Pan No.Aabcw2372H अपीलाथ" Appellant ""यथ"/Respondent

Section 115ASection 143(3)Section 144C(5)Section 234ASection 234DSection 244ASection 274Section 9

designing, SSL certification services etc. amounting to INR 7,49,03,087/- should be brought to tax as fee for technical services/ fees for included services and in doing so, failed to appreciate: (i) that the receipts are not taxable under section 9(i)(vii) read with section 115A ... held that income is in the nature of technical services and is taxable in the hands of the assessee company as fees for included services under India-USA DTAA observing as under: 25 I.T.A.No.1774/Del/2022 “In the instant case the consultancy services are of technical nature, therefore, such services

Visteon Corporation, Michigan vs. DCIT, Intenl Taxn, Circle-2(2), Chennai

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

ITA 262/CHNY/2023[2017-18]Status: DisposedITAT Chennai26 Jul 2024AY 2017-18

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita Nos.:259, 260, 261 & 262/Chny/2023 िनधा"रण वष"/Assessment Years:2014-15, 2015-16, 2016-17 & 2017-18 & S.A. Nos. 28, 29 & 30/Chny/2023 [In Ita Nos. 259, 261 & 262/Chny/2023] M/S. Visteon Corporation, The Deputy Commissioner Grace Lake Corporation Centre, Vs. Of Income Tax, Van Buren Township, International Taxation, Michigan - 48111 Circle 2(2), Chennai. Pan: Aadcv 5660K (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri Ajay Vohra, Sr. Advocate (By Virtual) Shri Aditya Vohra, Advocate ""यथ" क" ओर से/Respondent By : Shri Nilay Bara Som, Cit सुनवाई क" तारीख/Date Of Hearing : 01.07.2024 घोषणा क" तारीख/Date Of Pronouncement : 26.07.2024 आदेश /O R D E R Per Mahavir Singh: These Three Appeals By The Assessee In Ita Nos.259, 261 & 262/Chny/2023 Are Arising Out Of The Final Assessment Orders Passed By The Assistant Commissioner Of Income Tax, International Taxation Circle 2(2), Chennai Vide Orders Of Even Date 06.01.2023 In Pursuant To The Directions Of The Dispute Resolution Panel-2

For Appellant: Shri Ajay Vohra, Sr. Advocate (By Virtual)For Respondent: Shri Nilay Bara Som, CIT
Section 142(1)Section 263

Form 15CA filed by the payer entities. 6. The learned AO and the DRP have erred in law by treating the amount as ‘fees for included services’ under Article 12(4) the India-USA Double Taxation Avoidance Agreement (‘DTAA’). 7. Notwithstanding the above, the learned AO and the DRP have ... year 2014-15 were not offered to tax in the return of income and why it should not fall under the category of ‘fee for included services [FIS]’ under the Act and the India-USA tax treaty. The company replied vide letter dated 28.02.2022 stating that the service provided

Visteon Corporation, Michigan vs. DCIT, Intenl Taxn, Circle-2(2), Chennai

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

ITA 261/CHNY/2023[2016-17]Status: DisposedITAT Chennai26 Jul 2024AY 2016-17

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita Nos.:259, 260, 261 & 262/Chny/2023 िनधा"रण वष"/Assessment Years:2014-15, 2015-16, 2016-17 & 2017-18 & S.A. Nos. 28, 29 & 30/Chny/2023 [In Ita Nos. 259, 261 & 262/Chny/2023] M/S. Visteon Corporation, The Deputy Commissioner Grace Lake Corporation Centre, Vs. Of Income Tax, Van Buren Township, International Taxation, Michigan - 48111 Circle 2(2), Chennai. Pan: Aadcv 5660K (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri Ajay Vohra, Sr. Advocate (By Virtual) Shri Aditya Vohra, Advocate ""यथ" क" ओर से/Respondent By : Shri Nilay Bara Som, Cit सुनवाई क" तारीख/Date Of Hearing : 01.07.2024 घोषणा क" तारीख/Date Of Pronouncement : 26.07.2024 आदेश /O R D E R Per Mahavir Singh: These Three Appeals By The Assessee In Ita Nos.259, 261 & 262/Chny/2023 Are Arising Out Of The Final Assessment Orders Passed By The Assistant Commissioner Of Income Tax, International Taxation Circle 2(2), Chennai Vide Orders Of Even Date 06.01.2023 In Pursuant To The Directions Of The Dispute Resolution Panel-2

For Appellant: Shri Ajay Vohra, Sr. Advocate (By Virtual)For Respondent: Shri Nilay Bara Som, CIT
Section 142(1)Section 263

Form 15CA filed by the payer entities. 6. The learned AO and the DRP have erred in law by treating the amount as ‘fees for included services’ under Article 12(4) the India-USA Double Taxation Avoidance Agreement (‘DTAA’). 7. Notwithstanding the above, the learned AO and the DRP have ... year 2014-15 were not offered to tax in the return of income and why it should not fall under the category of ‘fee for included services [FIS]’ under the Act and the India-USA tax treaty. The company replied vide letter dated 28.02.2022 stating that the service provided

Visteon Corporation, Michigan vs. DCIT International Taxation, Circle 2(2), Chennai

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

ITA 260/CHNY/2023[2015-16]Status: DisposedITAT Chennai26 Jul 2024AY 2015-16

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita Nos.:259, 260, 261 & 262/Chny/2023 िनधा"रण वष"/Assessment Years:2014-15, 2015-16, 2016-17 & 2017-18 & S.A. Nos. 28, 29 & 30/Chny/2023 [In Ita Nos. 259, 261 & 262/Chny/2023] M/S. Visteon Corporation, The Deputy Commissioner Grace Lake Corporation Centre, Vs. Of Income Tax, Van Buren Township, International Taxation, Michigan - 48111 Circle 2(2), Chennai. Pan: Aadcv 5660K (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri Ajay Vohra, Sr. Advocate (By Virtual) Shri Aditya Vohra, Advocate ""यथ" क" ओर से/Respondent By : Shri Nilay Bara Som, Cit सुनवाई क" तारीख/Date Of Hearing : 01.07.2024 घोषणा क" तारीख/Date Of Pronouncement : 26.07.2024 आदेश /O R D E R Per Mahavir Singh: These Three Appeals By The Assessee In Ita Nos.259, 261 & 262/Chny/2023 Are Arising Out Of The Final Assessment Orders Passed By The Assistant Commissioner Of Income Tax, International Taxation Circle 2(2), Chennai Vide Orders Of Even Date 06.01.2023 In Pursuant To The Directions Of The Dispute Resolution Panel-2

For Appellant: Shri Ajay Vohra, Sr. Advocate (By Virtual)For Respondent: Shri Nilay Bara Som, CIT
Section 142(1)Section 263

Form 15CA filed by the payer entities. 6. The learned AO and the DRP have erred in law by treating the amount as ‘fees for included services’ under Article 12(4) the India-USA Double Taxation Avoidance Agreement (‘DTAA’). 7. Notwithstanding the above, the learned AO and the DRP have ... year 2014-15 were not offered to tax in the return of income and why it should not fall under the category of ‘fee for included services [FIS]’ under the Act and the India-USA tax treaty. The company replied vide letter dated 28.02.2022 stating that the service provided

Visteon Corporation, Michigan vs. DCIT, Intenl Taxn, Circle-2(2), Chennai

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

ITA 259/CHNY/2023[2014-15]Status: DisposedITAT Chennai26 Jul 2024AY 2014-15

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita Nos.:259, 260, 261 & 262/Chny/2023 िनधा"रण वष"/Assessment Years:2014-15, 2015-16, 2016-17 & 2017-18 & S.A. Nos. 28, 29 & 30/Chny/2023 [In Ita Nos. 259, 261 & 262/Chny/2023] M/S. Visteon Corporation, The Deputy Commissioner Grace Lake Corporation Centre, Vs. Of Income Tax, Van Buren Township, International Taxation, Michigan - 48111 Circle 2(2), Chennai. Pan: Aadcv 5660K (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri Ajay Vohra, Sr. Advocate (By Virtual) Shri Aditya Vohra, Advocate ""यथ" क" ओर से/Respondent By : Shri Nilay Bara Som, Cit सुनवाई क" तारीख/Date Of Hearing : 01.07.2024 घोषणा क" तारीख/Date Of Pronouncement : 26.07.2024 आदेश /O R D E R Per Mahavir Singh: These Three Appeals By The Assessee In Ita Nos.259, 261 & 262/Chny/2023 Are Arising Out Of The Final Assessment Orders Passed By The Assistant Commissioner Of Income Tax, International Taxation Circle 2(2), Chennai Vide Orders Of Even Date 06.01.2023 In Pursuant To The Directions Of The Dispute Resolution Panel-2

For Appellant: Shri Ajay Vohra, Sr. Advocate (By Virtual)For Respondent: Shri Nilay Bara Som, CIT
Section 142(1)Section 263

Form 15CA filed by the payer entities. 6. The learned AO and the DRP have erred in law by treating the amount as ‘fees for included services’ under Article 12(4) the India-USA Double Taxation Avoidance Agreement (‘DTAA’). 7. Notwithstanding the above, the learned AO and the DRP have ... year 2014-15 were not offered to tax in the return of income and why it should not fall under the category of ‘fee for included services [FIS]’ under the Act and the India-USA tax treaty. The company replied vide letter dated 28.02.2022 stating that the service provided

Mixpanel Inc., Usa vs. ACIT Circle- 2(2)(1) Int.Taxation., New Delhi

The appeal is allowed

ITA 1996/DEL/2022[2018-19]Status: DisposedITAT Delhi26 Jul 2024AY 2018-19

Bench: Shri Gs Pannu & Shri Anubhav Sharma

For Appellant: Shri Kamal Sawhney, AdvocateFor Respondent: Shri Vizay B. Vasanta, CIT(DR)
Section 143(2)Section 143(3)Section 144C(13)

technical services given in explanation 2 under section 9(1)(vii) of the Act and Article 12(4) of India-USA DTAA, where fees for included services is defined. 6. The assessee is in appeal raising following grounds; “On the facts and in the circumstances of the case ... since absence of a show-cause notice for treating the incomes under question as fees for included services, and non-granting of any opportunity to the assessee to present its case on this issue, results in violation of principles of natural justice, making the impugned order void ab initio

Invesco Uk Limited, Uk vs. ACIT, Circle Int.Tax. 2(1)(1), New Delhi

The appeals of the assessee are allowed

ITA 785/DEL/2023[2020-21]Status: DisposedITAT Delhi23 Jul 2024AY 2020-21

Bench: Sh. G.S. Pannu & Sh. Anubhav Sharma

Section 143(3)Section 144C(5)Section 270ASection 274

income of the Company on account of reimbursement of cost for providing IT Support services by treating the same as fees for included services (FIS) under Article 12 of the India- USA Double Taxation Avoidance Agreement ('DTAA) 3. On the facts and circumstances of the case ... Article 12(4)(b) of the India-USA DTAA is not satisfied and hence the case of the Assessee cannot be covered under "Fees for Included Services or FTS as contemplated under the India-USA DTAA. 2.4 However, the AO was not satisfied and framed a Draft Assessment Order

Invesco Holding Company (Us) Inc., Usa vs. ACIT, Circle Int. Tax. 2(1)(1), New Delhi

The appeals of the assessee are allowed

ITA 784/DEL/2023[2020-21]Status: DisposedITAT Delhi23 Jul 2024AY 2020-21

Bench: Sh. G.S. Pannu & Sh. Anubhav Sharma

Section 143(3)Section 144C(5)Section 270ASection 274

income of the Company on account of reimbursement of cost for providing IT Support services by treating the same as fees for included services (FIS) under Article 12 of the India- USA Double Taxation Avoidance Agreement ('DTAA) 3. On the facts and circumstances of the case ... Article 12(4)(b) of the India-USA DTAA is not satisfied and hence the case of the Assessee cannot be covered under "Fees for Included Services or FTS as contemplated under the India-USA DTAA. 2.4 However, the AO was not satisfied and framed a Draft Assessment Order

Charies River Laboratories Montreal, Ulc, Canada vs. ACIT, Circle- 1(2)(1) Int. Taxation, New Delhi

ITA 2324/DEL/2022[2019-20]Status: DisposedITAT Delhi23 Jul 2024AY 2019-20

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharmaassessment Year: 2019-20 Charles River Laboratories Vs Acit, Montreal, Ulc, Circle-1(2)(1), 22022 Transcanadienenne, International Taxation, Quebec, Senneville, New Delhi. Canada-H9X3R3, Canada. Pan: Aagcc4061J (Appellant) (Respondent) Assessee By : Shri Chavali S. Narayana, Ca Revenue By : Shri Vizay B. Vasanta, Cit-Dr Date Of Hearing : 25.04.2024 Date Of Pronouncement : 23.07.2024

For Appellant: Shri Chavali S. Narayana, CAFor Respondent: Shri Vizay B. Vasanta, CIT-DR
Section 142(1)Section 143(3)

each other. 1. Ground 1: Income earned by the Appellant erroneously characterized to be in the nature of Fees for Technical Services/ Fees for Included Services under the Act and the India - Canada Tax Treaty (“Tax treaty”) and is consequently subject to tax in India 1.1 On the facts ... learned AO erred in holding that the income earned by CRL Montreal from its customers in India is in the nature of Fees for Included Services (“FIS”) / Fees for Technical Services (“FTS”) and consequently liable to tax in India, without having due regard to Article

ACIT, Circle-6(1)(2), Mumbai. vs. Kpmg India Pvt. Ltd., Mumbai

In the result, appeal of the revenue is dismissed

ITA 4494/MUM/2023[2010-11]Status: DisposedITAT Mumbai15 Jul 2024AY 2010-11

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Ajit Kumar Jain & Shri Siddhesh Chaugule, A/RsFor Respondent: Shri Anil Sant, Sr. D/R
Section 40

within the meanings of 'explanation' to section 9(1)(vi) and is taxable under Article 12 of Indo-US DTAA. The royalties and fees for included services is taxable as per Article 12 in clause 3, reads as under :- "3. The term "royalties" as used in this Article means ... within the meanings of 'explanation' to section 9(1)(vi) and is taxable under Article 12 of Indo- US DTAA. The royalties and fees for included services is taxable as per Article 12 in clause 3, reads as under :- "3. The term "royalties" as used in this Article means

M/S. Steer America Inc., United States vs. The Deputy Commissioner of Income Tax, International Taxation Circle -1(2), Bengaluru

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

ITA 833/BANG/2024[2014-15]Status: DisposedITAT Bangalore10 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadav

For Appellant: Sri Vasanth Kumar, A.RFor Respondent: Ms. Anjala Sahu, D.R
Section 144CSection 147Section 148

does not satisfy the test of 'Make Available' as envisaged in India-USA DTAA and therefore does not qualify as fees for included services under DTAA. IT(IT)A Nos.832 & 833/Bang/2024 Steer America Inc., Bangalore Page 3 of 37 6. Services Provided by the Appellant does not qualify ... does not satisfy the test of "Make Available" as envisaged in INDIA- USA DTAA and transfer does not qualify as fees for included services or fees for technical services under DTAA. 7. The lower authorities have erred in placing reliance on the judicial decisions which are distinguishable both on facts

M/S. Steer America Inc., United States vs. The Deputy Commissioner of Income Tax, International Taxation Circle -1(2), Bengaluru

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

ITA 832/BANG/2024[2013-14]Status: DisposedITAT Bangalore10 Jul 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadav

For Appellant: Sri Vasanth Kumar, A.RFor Respondent: Ms. Anjala Sahu, D.R
Section 144CSection 147Section 148

does not satisfy the test of 'Make Available' as envisaged in India-USA DTAA and therefore does not qualify as fees for included services under DTAA. IT(IT)A Nos.832 & 833/Bang/2024 Steer America Inc., Bangalore Page 3 of 37 6. Services Provided by the Appellant does not qualify ... does not satisfy the test of "Make Available" as envisaged in INDIA- USA DTAA and transfer does not qualify as fees for included services or fees for technical services under DTAA. 7. The lower authorities have erred in placing reliance on the judicial decisions which are distinguishable both on facts