Expenditure in the nature of reimbursement cannot fall within the purview of fees for technical services

ACIT Vs. Louis Berger International Inc. (ITAT Hyderabad)- Referring to article 12(4) of the Double Taxation Avoidance Agreement between Government of India and USA, the learned counsel submitted that any amount other than the amount received as consideration for services rendered cannot form part of fee for technical service. Therefore, the reimbursable expenditure cannot constitute fee paid/payable for the services rendered by the assessee. The learned counsel submitted that the reimbursable expenditure by the Government or its department cannot be treated as income of the assessee. Referrin...