Payments for Centralized Hotel Services Not FTS or Included Services: Delhi HC

CIT Vs Starwood Hotel And Resorts Worldwide Inc. (Delhi High Court) Delhi High Court has dismissed an appeal filed by the Income Tax Department against a tribunal ruling that payments received by Starwood Hotel And Resorts Worldwide Inc. from its Indian customers for centralized services did not constitute ‘Fee for Technical Services’ (FTS) under the Income Tax Act or ‘Fee for included services’ under the Indo-US Double Taxation Avoidance Agreement (DTAA). The court’s decision was primarily based on its own binding precedent on the matter, which, despite being und...