Standby Maintenance Charges cannot be assessed as Fees for Technical Services but as Business Income

Reliance Globalcom Limited Vs DCIT (ITAT Mumbai)

Conclusion: Standby Maintenance Charges received by  assessee from TCL could not be assessed as FTS and was its “business income‟ that was taxable only to the extent of its reference to the “business connection” in India. Turnover (receipts) of Standby Maintenance Charges from TCL i.e attributable to the operations carried out had to be calculated on the basis of apportionment of cable length in India vis-a-vis the worldwide cable length.

Please become a Premium member. If you are already a Premium member, login here to access the full content.