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| The Tax Publishers2023 TaxPub(DT) 3 (Del-Trib) INCOME TAX ACT, 1961
Section 90
Consideration received by Singapore based assessee towards rendition of information technology and other administrative services to its affiliate in India was not in the nature of in order to bring the alleged managerial services within the ambit of FTS under the India-Singapore DTAA, the services would have to satisfy the 'make-available' test and such services should enable the person acquiring the services to apply the technology contained therein as service recipient of the assessee was unable to make use of the technology only by itself in its business or for its own benefit without recourse to the assessee year after year.
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Double taxation relief - Agreement between India and Singapore - Fees for Technical Services (FTS) - Consideration received towards information technology and other administrative services to its affiliate in India
Assessee based at Singapore rendered information technology and other administrative services to its affiliate in India. AO taxed consideration received by assessee as Fees for Technical Services (FTS). Held: In order to bring the alleged managerial services within the ambit of FTS under the India-Singapore DTAA, the services would have to satisfy the 'make-available' test and such services should enable the person acquiring the services to apply the technology contained therein. In the instant case, service recipient of the assessee was unable to make use of the technology only by itself in its business or for its own benefit without recourse to the assessee year after year. Accordingly, receipts of assessee on account of provision of information technology and other administrative services to its affiliate in India were not in the natue of Fees for Technical Services.
Relied:Guy Carpenter (2012) 346 ITR 504 (Del) : 2012 TaxPub(DT) 2095 (Del-HC), De Beers India Minerals (P) Limited (2012) 346 ITR 467 (Karn) : 2012 TaxPub(DT) 2504 (Karn-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2018 to 2019-20
IN THE ITAT, DELHI D BENCH,
N.K. BILLAIYA, A.M., & YOGESH KUMAR, J.M.
Bio Rad Laboratories Vs. The A.C.I.T
ITA No. 995/DEL/2022
(A.Y 2018-19)
ITA No. 997/DEL/2022
(A.Y 2019-20)
30 December, 2022
Assessee by: K.M. Gupta, Adv. Shruti Khimta, AR
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