(1)Income in the nature of royalty or fees for technical services received by a specified assessee during a tax year, shall be computed under the head "Profits and gains of business or profession" under this Act, if the following conditions are satisfied:––(a)income is received from the Government or an Indian concern;(b)income is in pursuance to an agreement made by the specified assessee with the Government or the Indian concern;(c)the specified assessee carries on business in India through a permanent establishment, or performs professional services from a fixed place of profession, situated in India; and(d)the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed place of profession.
