Income cannot be taxed as FTS in India in absence of FTS clause in DTAA

Brief of the case:

• The ITAT Mumbai in the case of Mckinsey Business Consultants Vs. DDIT held that if there is no clause in DTAA to tax fees for technical services (FTS) then the same is taxable as business profits provided the income is earned by assessee through a PE in India.
• Further , such income cannot be taxed as FTS under the provisions of Act because the residuary clause of India- Greece DTAA does not allow the incomes earned in ordinary course of business to be checked with I.T Act , it is only residuary incomes which need to be checked under the Act that too when DTAA is silent.

Please become a Premium member. If you are already a Premium member, login here to access the full content.