Case Law Details
Commissioner of Income Tax Vs Bio-Rad Laboratories (Singapore) PTE Ltd (Delhi High Court)
Introduction: A recent case heard by the Delhi High Court involves the taxation of income from information technology and administrative services provided by a Singapore-based entity to its Indian affiliate. The key issue centered around whether these services qualified as “Fees for Technical Services” (FTS) under the India-Singapore Double Taxation Avoidance Agreement (DTAA). This article delves into the details and implications of the case Commissioner of Income Tax vs. Bio-Rad Laboratories (Singapore) PTE Ltd.
Detailed Analysis:
1. Case Background: The case pertains to the assessment year 2019-20. The primary question before the court was whether the services rendered by Bio-Rad Laboratories (Singapore) to its Indian affiliate should be classified as FTS for taxation purposes under the India-Singapore DTAA.
2. The Tax Authority’s Stand: The Assessing Officer (AO) had initially categorized the services as “management support services.” As a result, these services were subject to taxation under the Indo-Singapore DTAA. The AO argued that the services provided included professional advice, studies, evaluation, report reviews, HR management, financial management, and other forms of support.
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