Invesco Holding Company (US) Inc. Vs ACIT (ITAT Delhi)
ITAT Delhi held that the condition of make available was not satisfied for services when provided by assessee did not enabled the AEs to apply the technology independently. Thus, technical service provided to AEs not taxable.
Facts- The Assessee is a tax resident of the USA and provides Information Technology (“IT”) Application services, IT Infrastructure services and IT security (“IT services”) to its AEs globally including the ones present in India. The holds Tax Residency Certificate (“TRC”) and claims to be eligible to be governed by the provisions of the India-USA DTAA which fact is undisputed.
The case of the Assessee was selected for scrutiny and during the assessment, the Assessee was required to show cause as to why payment received by the Assessee from its Indian AE(s) for rendering IT Services should not be considered as Fees for Technical Services and why should it not be taxable accordingly both under the Act as well as the DTAA.
AO observed that same are covered within the ambit of FTS and reliance was placed on Authority for Advance Ruling (“AAR”) ruling of M/s Shell India Markets Pvt. Ltd. DRP was also of the opinion that the case of the Assessee clearly falls within the ambit of FTS under the Act and the India-USA DTAA.
