| The Tax Publishers2020 TaxPub(DT) 5005 (Del-Trib) INCOME TAX ACT, 1961
Section 90
Intermediary services rendered by assessee based at Sweden did not make available any technical knowledge, skill, etc., to an Indian entity which was not equipped to apply technology contained in services rendered by assessee. Therefore, intermediary services fee received by assessee did not tantamount to fees for technical services and was, therefore, not taxable in India.
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Double taxation relief - Agreement between India and Sweden - Fees for technical services - Consideration received by non-resident assessee towards intermediary services
Assessee, based at Sweden, rendered intermediary services like marketing, sales, business development, project management, customer services, etc., and had received fees for intermediary services. AO taxed the same as fees for technical services. Held: Intermediary services rendered by assessee did not make available any technical knowledge, skill, etc., to an Indian entity which was not equipped to apply technology contained in services rendered by assessee. Therefore, intermediary services fee received by assessee did not tantamount to fees for technical services and was, therefore, not taxable in India.
Relied:De Beers India Minerals Private Limited (2012) 346 ITR 467 (Karn) : 2012 TaxPub(DT) 2504 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, DELHI 'D' NEW DELHI BENCH
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