In absence of PE Training charges cannot be taxed as Business Income under DTAA with Sweden

Sandvik AB Vs DCIT (ITAT pune) Explore the tax implications as Sandvik AB challenges the characterization of Training fees, testing DTAA provisions, and its application in the ITAT Pune decision. We find that the assessee characterized the receipt of Training fee as a consideration for `managerial’ services within the overall ambit of Article 12 and the Revenue also accepted the same as falling under that Article but as `consultancy or technical’ service. We have held supra that the Training fee received by the assessee does not fall within the purview of Article 12 of the DTAA with Portug...