Panalfa Autoelecktrik (supra), this Court observed that technical
services consist of services of technical nature "when special skills or
knowledge relating to technical field ... maintained by PGCIL through its technical personnel using technical
expertise. This, however, does not result in PGCIL providing technical
services to DTL. Therefore the wheeling
technical plan or
technical design.
W.P.(C) 4793/2014 Page 5 of 12
5. The definition of fees for technical services in paragraph ... Services Agreement is managerial services. It is plain that
once the expression 'managerial services' is outside the ambit of „fee for
technical services
also provided
financial and marketing services. Apart from the direct services, HII also
rendered some indirect administrative services. Thus, services are
rendered to several subsidiaries ... which HIAI agreed to provide data
processing services, accounting, financial and planning services,
marketing services, long term financial planning for the Assessee,
analysis of prospects
operations of aircraft in international business as well as rendering of technical services to other airlines. The assessed during the year under consideration has declared ... income from rendering of technical services in its return of income and has claimed the same to be covered under Article-8 of the DTAA
would be allowed in respect of any
interest, royalty, fees for technical services or other sum chargeable under
the Act which is payable outside India ... subscription before the 1st day of April, 1938),
royalty, fees for technical services or other sum chargeable
ITA 32/2004 Page 11 of 22
under
receipts were taxable either as business income or
as fee for technical services (FTS). In these three appeals, however, the
Court proposes to confine ... Maintenance
(O&M) Agreements should be treated as fees for technical services („FTS‟)
within the meaning of Explanation 2 to Section
subscription before the 1st day of April, 1938),
royalty, fees for technical services or other sum
chargeable under this Act, which is payable,--
(A) outside ... section (1) of
section 9 ;
(B) "fees for technical services" shall have the same
meaning as in Explanation 2 to clause
regarded as a payment by way of fee for
technical services and accordingly, chargeable to tax in India is
correct in law?
(iii) Whether ... technical/included services' only if the twin test of rendering
services and making technical knowledge available at the same time is
satisfied
technical services" as used in this Article means
payments of any kid to any person in consideration for services or a
managerial, technical ... rendering of any managerial, technical or consultancy services
(including the provision of services of technical or other personnel) but
does not include consideration
disguised royalty payment. It was not a payment for
technical services either.
20. In this context, the Court concurs with the following findings ... hold that export commission was neither
royalty nor fee for technical services and, therefore, the assessee was
not required to deduct tax at source
