Services by non-resident agent for completion of export commitment doesn’t fall under Fee for Technical Services

DCIT/ACIT Vs VA Tech Wabag Ltd. (ITAT Chennai) ITAT Chennai held that the services rendered by non-resident agent for completion of export commitment would not fall under the definition for fee for technical services. Hence, disallowance alleging non-deduction of TDS unjustified. Facts- The assessee acquired the shares in VA Tech Wabag GmBH, Austria (VA Tech, Austria) from Siemens Aktiengesellschaft Osterreich, Austria (Siemens). At the time of acquisition of shares, the assessee took over the contingent liability, which included a corporate performance guarantee given by Siemens to the Bank o...