Sponsored
    Follow Us:

fees for technical services

Latest Articles


Countrywise Withholding Tax Rates: IT Act vs. Tax Treaties/DTAA

Income Tax : Countrywise withholding tax rates as per the Income Tax Act compared to tax treaties/DTAA. Understand differences & implications f...

September 3, 2024 38659 Views 1 comment Print

Installation & Commissioning Expenses not covered under definition of FTS u/s 9 of Income Tax Act, 1961

Income Tax : The issue is no longer res integra as it has been held by Hon’ble ITAT Mumbai in case of Bennet Coleman & Co. Ltd. Vs ITO(TD...

November 22, 2014 5107 Views 0 comment Print

Taxation of Income by way of Royalty or Fees for Technical Services

Income Tax : Section 115A of the Income-tax Act provides for determination of tax in case of a non-resident taxpayer where the total income inc...

February 28, 2013 11829 Views 0 comment Print

Supreme Court rules that an element of human intervention required for taxing a payment as ‘fees for technical services’

Income Tax : A recent ruling of the Supreme Court (SC) in a batch of cases, with the lead case being that of Bharti Cellular Ltd. (Taxpayer), o...

August 26, 2010 7490 Views 0 comment Print

Technical services by Non residents provided outside Indian but utilized in India is taxable

Income Tax : As per Memorandum on Finance Bill, 2010 a source rule was inserted in section 9 of Income-tax Act in 1976 with an intention of bri...

March 9, 2010 3584 Views 0 comment Print


Latest News


Deputation of employees- Taxability as fees for technical services/ PE issues

Income Tax : An issue is under debate as to whether payments made by the Indian company to foreign company towards reimbursement of the salary ...

January 24, 2018 4548 Views 1 comment Print

Companies having permanent establishment in India will be taxed on their technical services fees at marginal tax rate

Income Tax : The finance ministry is hoping to recover about Rs 10,000 crore from non-resident service providers to oil and gas explorers in I...

March 6, 2010 3388 Views 0 comment Print


Latest Judiciary


Provision of SAP and IT support service not covered within FTS is not taxable in India

Income Tax : ITAT Delhi held that amount received by the assessee from providing SAP support services and IT support services is not covered wi...

March 20, 2023 1524 Views 0 comment Print

Technical fee for setting up of new plant for first time to manufacture cars is revenue expenditure

Income Tax : Assessee in all these appeals is Honda SIEL Cars Ltd. (hereinafter referred to as the Assessee). Question of law that is raised is...

June 13, 2017 1068 Views 0 comment Print

Make Available’ under India-Singapore DTAA vis-à-vis Technology Transfer Agreement and Services Agreement

Income Tax : Filtrex Technologies Pvt. Ltd. v. ACIT - ITAT Bangalore held that payments made under a Technology Transfer Agreement 'make avail...

May 17, 2011 7993 Views 0 comment Print

Payments for referral services cannot be termed as fees for technical services (FTS)

Income Tax : The receipts in the nature of referral fees do not constitute “fee for technical services”. Further, in the absence of a PE in...

July 9, 2010 2127 Views 0 comment Print

Business Profits of Permanent Establishment (PE) not taxable on gross basis as Fees for Technical Services

Income Tax : The assessee, a division of Technical Resources Prt. Ltd. Australia, had entered into contracts with Rio Tinto India Pvt. Ltd. (RT...

July 1, 2010 1273 Views 0 comment Print


Latest Posts in fees for technical services

Countrywise Withholding Tax Rates: IT Act vs. Tax Treaties/DTAA

September 3, 2024 38659 Views 1 comment Print

Countrywise withholding tax rates as per the Income Tax Act compared to tax treaties/DTAA. Understand differences & implications for dividends, interest, royalties and technical services.

Provision of SAP and IT support service not covered within FTS is not taxable in India

March 20, 2023 1524 Views 0 comment Print

ITAT Delhi held that amount received by the assessee from providing SAP support services and IT support services is not covered within the purview of Fees for Technical Services (FTS) and hence not taxable in India in absence of permanent establishment.

Deputation of employees- Taxability as fees for technical services/ PE issues

January 24, 2018 4548 Views 1 comment Print

An issue is under debate as to whether payments made by the Indian company to foreign company towards reimbursement of the salary costs of persons deputed to India would be treated as fees for technical services.

Technical fee for setting up of new plant for first time to manufacture cars is revenue expenditure

June 13, 2017 1068 Views 0 comment Print

Assessee in all these appeals is Honda SIEL Cars Ltd. (hereinafter referred to as the Assessee). Question of law that is raised is also identical. Five appeals are filed only because of the reason that same issue has occurred in different Assessment Years, i.e., for the years 1999-2000, 2001-2002, 2002-2003, 2003-2004 and 2005-2006.

Installation & Commissioning Expenses not covered under definition of FTS u/s 9 of Income Tax Act, 1961

November 22, 2014 5107 Views 0 comment Print

The issue is no longer res integra as it has been held by Hon’ble ITAT Mumbai in case of Bennet Coleman & Co. Ltd. Vs ITO(TDS) [ITA No. 7315/Mum/2008] pronounced on 12-11-2014 wherein the assesse (Times of India) has entered into an agreement with M/s FERAG AG for supply of heavy plant and machinery along […]

Taxation of Income by way of Royalty or Fees for Technical Services

February 28, 2013 11829 Views 0 comment Print

Section 115A of the Income-tax Act provides for determination of tax in case of a non-resident taxpayer where the total income includes any income by way of Royalty and Fees for technical services (FTS) received under an agreement entered after 31.03.1976 and which are not effectively connected with permanent establishment, if any, of the non-resident […]

Make Available’ under India-Singapore DTAA vis-à-vis Technology Transfer Agreement and Services Agreement

May 17, 2011 7993 Views 0 comment Print

Filtrex Technologies Pvt. Ltd. v. ACIT – ITAT Bangalore held that payments made under a Technology Transfer Agreement ‘make available’ technical knowledge or experience, and hence, are taxable as Fees for Technical Services in terms of Article 12(4)(b) of Double Taxation Avoidance Agreement between India and Singapore. Also, payments made for services in the nature of marketing support and other administrative services do not ‘make available’ technology, and hence, cannot be held as FTS under Article 12 of DTAA between India and Singapore.

Supreme Court rules that an element of human intervention required for taxing a payment as ‘fees for technical services’

August 26, 2010 7490 Views 0 comment Print

A recent ruling of the Supreme Court (SC) in a batch of cases, with the lead case being that of Bharti Cellular Ltd. (Taxpayer), on whether any manual intervention is involved in the technical operations by which a cellular service provider, such as the Taxpayer, is given facility for interconnection. If manual intervention is involved, the payments for such facility would be considered as ‘fees for technical services’ (FTS) under the Indian Tax Laws (ITL) and the Taxpayer would be required to withhold taxes. In this context, one may recall that the Delhi High Court (HC) [319 ITR 139] had earlier held that as these services do not involve any human interface, these cannot be regarded as FTS as contemplated under the ITL.

Payments for referral services cannot be termed as fees for technical services (FTS)

July 9, 2010 2127 Views 0 comment Print

The receipts in the nature of referral fees do not constitute “fee for technical services”. Further, in the absence of a PE in India, the same cannot be subject to tax in India.

Business Profits of Permanent Establishment (PE) not taxable on gross basis as Fees for Technical Services

July 1, 2010 1273 Views 0 comment Print

The assessee, a division of Technical Resources Prt. Ltd. Australia, had entered into contracts with Rio Tinto India Pvt. Ltd. (RTIPL) for evaluation of coal deposits in Maharashtra and Orissa and for corresponding feasibility studies for transporting the same.

Sponsored
Sponsored
Search Post by Date
October 2024
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031