Mere use of technical design or plan without absolute transfer of right of ownership is taxable as fees for included services under Article 12 of the Indo-Canadian Treaty

The term “transfer” used in Article 12(4) does not refer to absolute transfer of right of ownership. The assessee, a non-resident company engaged in the business of providing consultancy for infrastructure projects, entered into an agreement with the National Highway Authority of India (NHAI) for providing technical drawings and reports to NHAI for its infrastructure projects. The assessee was required to investigate the availability and viability of various modern technologies to ensure most economical cost estimate without affecting the quality of work. The scope of the services included...