Routine Support Services Not Royalty Under DTAA; Taxable as Business Profits Without PE: ITAT Delhi

Advertisement Alstom (Shared Services) Philippines Inc. Vs DCIT (ITAT Delhi) The appeals concerned whether consideration received by two non-resident assessees for providing business support and human resources services to their Indian group entities was taxable in India as royalty or otherwise under the applicable Double Taxation Avoidance Agreements (DTAAs). One assessee was a tax resident of the Philippines and the other of Thailand. Both assessment orders had been passed under Sections 147 read with 144C(13) of the Income-tax Act for AY 2018-19. The assessees did not press their challen...