Overseas companies should not be treated
as Fees for Technical Services (FTS) and why IBM India should not be
treated as an assessee in default ... plea of IBM India that the said reimbursements do not
constitute FTS in the hands of IBM Overseas companies as contemplated
under the provisions
chnical se rvices" ("FTS") and it would constitute income
chargeable to tax in the hands of Selexis under the Act as well ... payment made is for import of goods and is not for
FTS as wrongly presumed by the AO. The AO is unsure of the nature
hands of the recipients both as Royalty as well as FTS and therefore, the
assessee was liable to deduct TDS and since, the assessee ... liable to tax or not in the hands of the
recipients as FTS , as per Para 45, the tribunal remanded the matter back
earning source of Income
outside India. Hence, not
liable for TDS.
No FTS clause under the
Treaty; No PE in India;
WAREEF
Saudi Other income ... under the Treaty
New DTAA is applicable
only from 1.4.2014.
Definition of FTS is similar
Millennium to s. 9(1)(vii) ; Payment not
Sri Lanka
company.
Consequently, the services cannot be regarded as fees for technical
services (FTS).
5. The AO vide his letter dated: 09.02.2009 proposed to treat ... therefore any consideration paid towards these services comes within the
nature of FTS and therefore the assessee ought to have deducted tax at
source
resident can be regarded as a fee for technical
services (FTS) within the meaning of Explanation to section 9(1)(vii)
of the Act. Under ... defines what is "FTS" for
the purpose of Sec.9(1)(vii) of the Act and it reads thus:
Income deemed to accrue
through the assessee cannot be considered as
Fees for Technical Services ('FTS'). The DRP did not accept this contention of
the assessee ... assessee the payment for such services is in the ambit of FTS
defined in explanation 2 to sec. 9(1)(vii) of the Act, which
holding that the fees received
(i.e. fees for technical services (`FTS')) as taxable under
the Act, irrespective of there being no Article ... DTAA for taxation of FTS.
2. Penalty proceedings under section 271 The learned AO
has erred in initiating penalty proceedings under section
seconded
employees to tax as Fees for Technical Services ("FTS") either in the
return of income which was filed in response ... chargeable
to tax in India and hence, not subject to taxes as FTS under the Act.
3.3 The above view was backed by various judicial
seconded
employees to tax as Fees for Technical Services ("FTS") either in the
return of income which was filed in response ... chargeable
to tax in India and hence, not subject to taxes as FTS under the Act.
3.3 The above view was backed by various judicial
