Taxability of Support/Maintenance Services as FTS – ITAT directs de novo adjudication

Avaya International Sales Ltd Vs ACIT (ITAT Delhi) Introduction: The Avaya International Sales Ltd Vs ACIT case, presided over by ITAT Delhi, is an instrumental judgement that reopens discussions on the taxability of support/maintenance services in India. The central issue of consideration in this case was whether such payments can be classified as Fees for Technical Services (FTS) under the India – Ireland Double Taxation Avoidance Agreement (DTAA). Analysis: The case was brought to the ITAT by Avaya International Sales Ltd, a corporate entity incorporated under Irish laws. The debate centr...