Cost-to-cost reimbursement of secondment of employees not FTS under India-USA DTAA

ERNST & Young U.S. LLP Vs ACIT (ITAT Delhi) ITAT Delhi held that cost to cost reimbursement on account of secondment of employees cannot be treated as Fees for Technical Services (FTS) as defined under Article 12 of India USA-Double Tax Avoidance Agreement (DTAA). Facts- The only issue that is involved here is that whether cost to cost reimbursement on account of secondment of employees was Fees for Technical Services [FTS] as defined under Article 12 of the India-USA Double Tax Avoidance Agreement [DTAA] and whether arrangement between the assessee and Indian entities constitutes the ‘p...