ITAT explains impact on taxability when treaty not contains FTS clause

DCIT Vs Michelin ROH Co. Ltd. (ITAT Delhi) Brief facts of the case are that the assessee has a company incorporated in Thailand and offers a number of services, such as, business planning and coordination, engineering services, product research and development etc. to its Indian subsidiary. On offering these engineering services, the assessee obtained a revenue of Rs.9,01,61,150. The assessee did not offer the aforesaid amount for tax as the DTAA between India and Thailand did not have any article pertaining to taxation of ITS. The AO in his assessment order has stated that since there is no A...