Case Law Details
UK Grid Solution Limited Vs DCIT (ITAT Delhi)
Global operation fees not taxable as FTS under India-UK DTAA as ‘make available’ clause in Article 13(4)(c) not satisfied
ITAT Delhi held that global operation fees cannot be taxed as Fees for Technical Services (FTS) under the provisions of the Act and the India-UK DTAA as it doesn’t satisfy the ‘make available’ clause contained in Article 13(4)(c) of the India-UK DTAA.
Facts- The assessee appellant is a foreign company incorporated in the United Kingdom and a tax resident of that country in terms of Article 4 of the India-UK Double Taxation Avoidance Agreement.
During the relevant assessment years, the assessee had earned income from various Indian customers which the assessee claimed was not taxable as income was from offshore supplies only. The case of the assessee was selected for scrutiny due to a large claim of refund against tax deducted source.
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