No TDS on payment for simple marketing services of introducing foreign institutional investors by foreign subsidiary companies

We find that the moot question to be decided in this appeal is as to whether the payments made by the assessee to its foreign subsidiaries would fall under the ambit of ‘fees for technical services’ as per the DTAA. We find from the Article 12 of Singapore Treaty and Article 13 of the UK Treaty defining the term ‘fees for technical services’ , the consideration paid for rendering of managerial, technical or consultancy services would be covered under the said definition only if such services make available any technical knowledge, experience, knowhow, or processes. The nature of servic...