No TDS on Management Fee to AE as same was Not FTS: Delhi HC

Intertek India Private Limited Vs ITO (Delhi High Court) Introduction: In a recent decision, the Delhi High Court provided relief to Intertek India Private Limited, setting aside a notice issued under Section 201 of the Income Tax Act, 1961, and subsequent proceedings. The court emphasized that the management fees paid to Associated Enterprises (AEs) did not fall under the category of ‘fee for technical services’ (FTS), and therefore, Tax Deducted at Source (TDS) was not applicable. Background: Intertek India Private Limited faced a notice dated 10.10.2017, alleging a failure to ...