The Tax Publishers2019 TaxPub(DT) 0992 (Mum-Trib)

INCOME TAX ACT, 1961

Section 90

By providing advisory services regarding strategic and N & A options for the assessee, M/s. P. France did not make available 'any' 'technical knowledge, experience, skill, know-how or processes' to assessee, therefore, payment made by the assessee could not be treated as fees for technical services in view of article 13 of DTAA between India and France and thus, liability to withhold tax did not arise.

Double taxation relief - Agreement between India and France - Fee for technical services -

Assessee had engaged M/s. P based at France to provide advisory services regarding strategic and M&A options for the assessee. AO held that payment made by the assessee against said services was in the nature of fee for technical services and was, therefore, disallowable for want of TDS. Held: As apparent, M/s P did not make available 'any' 'technical knowledge, experience, skill, know-how or processes' to assessee, therefore, payment made by the assessee could not be treated as fees for technical services in view of article 13 of DTAA between India and France and thus, liability to withold tax did not arise.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12


INCOME TAX ACT, 1961

Section 14A Rule 8D

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