Supply of customized software and enabling client personnel to handle the system amounts to “fees for included services” under the India-US tax treaty

Facts The Airport Authority of India (“AAI”” or “the applicant”) entered into a contract with Raytheon Company USA (RC) for “Automation Upgrade for third runway at IGI Airport, New Delhi. The contract involves RC supplying hardware, software and providing services in connection with installation. The cost of software was the major component of the contract. All the activities under the contract were performed outside India by RC and only some support activities relating to installation and site inspection tests were rendered in India. The contract specifically provided that the ti...