Profits From offshore Supply of Hardware and Software Not Taxable – Delhi High Court

DIT Vs Ericsson AB (Delhi High Court)- It was argued that the Explanation as initially inserted in the year 2007 after subsection (2) of section 9 sought to clarify as to when income received by way of interest, royalty or fees for technical services, can be regarded as deemed to accrue or arise in India. The subsequent amendment made in the Explanation by the Finance Act, 2010 enacts a further clarification (by effectively adding clause (ii) in the Explanation) in so far as the tax ability of fees for technical services are concerned. The Supreme Court in Ishikawajima (supra) has held that if...