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The first two cases [Dunlop Rubber Co. Ltd. (supra) and DECTA (supra)] were referred to by the Authority in Danfoss Industries (P) Ltd., In re . In that case the applicant, an Indian company, proposed to enter into an agreement with Danfoss Singapore, a foreign company incorporated in Singapore which provided services to a group of companies including the Indian company. The consideration for availing of the services was a service fee based on the portion of the services received in relation to the total costs of the foreign company in providing such services. The fees was calculated on the basis of allocation key which was determined on a proportional percentage of budget turnover weighted by growth and market maturity of the company in the group availing the services and any increase or shortfall of the actual turnover would proportionately increase or decrease the portion of cost to be absorbed by the company which availed of the services of the foreign company. The Indian company applied to the Authority for a ruling on the question whether the payments to be made to the foreign company would be subject to withholding tax under Section 195 of the Act. It was ruled, inter alia: