Case Law Details
Brief of Case:
ITAT Delhi has held in the case of ITO, TDS vs. Nokia India Pvt. Ltd that services rendered does not qualify as FTS for technical services under the India Finland Tax Treaty if service provider has not made available to assessee any technical knowledge skill, know how, Technical Design etc. Services can be considered to be made available by provider only where the services leads to transfer/imparting of technical knowledge, experience, skills know-how, or processes to the recipient.
Brief Facts and Question of Law:
Brief Facts of the Assessee:
The Assessee Company is wholly owned subsidiary of Nokia Corporation. It is a company incorporated under the provisions of the Companies Act, 1956. During the year under consideration, it is in the process of setting up a manufacturing facility at Chennai. For this purpose, the contract for design, manufacturing and completion for the manufacturing facilities was given to Leighton Contractors India Pvt. Ltd. Olof Granlund Oy (herewith “Olof Granlund”) is a company incorporated in Finland and is engaged in the business of providing consulting services in relation to HV AC, electrical and fire protection systems and this company was engaged by the respondent assessee company for reviewing systems description, diagrams, cost estimates, building designs, preliminary system design and quality control equipment list/selections, lay out proposals, conducting inspections, etc. prepared by the Leighton Contractors India Pvt. Ltd. This was to ensure that Nokia’s global standards for the manufacturing facility are met. These services are rendered outside India only.
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