Payment for annual maintenance contracts could not be classified as fee for technical services

DHL Air Ltd. Vs. Dy. CIT (IT) (ITAT Mumbai) The impugned expenditure has been incurred by the assessee in pursuance of maintenance contract between the assessee and M/s. EAT, Germany. In the case of Kandla Port Trust (supra), it was held that the payment made for annual maintenance contracts would not fall under the category of fee for technical services within the meaning of provisions of section 194J of the Act. In the case of DDRC SRL Diagnostic (P) Ltd. (supra), the co-ordinate bench has noticed that the CBDT has expressed the view in Circular No. 715 (supra) that routine, normal mai...