Consideration paid to a foreign company for operating and maintaining a power plant cannot be considered as fees for technical services

Court : Delhi bench of the Income-tax Appellate Tribunal Citation : Rolls Royce Industrial Power Ltd. Vs. ACIT [2010-TII-139-ITAT-DEL-INTL] Brief : Recently, the Delhi bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Rolls Royce Industrial Power Ltd. v. ACIT [2010-TII-139-ITAT-DEL-INTL] (Judgement date 5 October 2010 Assessment Years 1998-99 to 2004-05) held that consideration paid to a foreign company for performance of a works contract of operating and maintaining a power plant cannot be considered as Fees for Technical Services (FTS) both under the Income-tax Act, 19...