Mere inspection of quality of fabric not amounts to fees for technical services

DIT Vs Jeans Knit Pvt. Ltd. (Karnataka High Court)

From the agreement executed by the assessee with the non-resident company, it is evident that the non-resident company is required to inspect the quality of fabric and other accessories in accordance with the sample approved by the assessee and coordinate with the suppliers to ship the goods within stipulated date. The services have been described in the agreement dated 01.03.2006 as information and tracking services. Under the agreement, the non-resident company is required to ensure coordination with

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