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TMI Blog2019 (11) TMI 1675X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in holding that the centralised services fee received by the appellant from rendering various services such as sales and marketing, loyalty programs, reservation service, technological services, operational services and training programs etc to customers in India, were not taxable as "Fee for Technical Services' (FTS) in terms of section 9 of the Income Tax Act, 1961 as well as article 12 of the India-US Double Taxation Avoidance Agreement (DTAA). (ii) The appellant the place for you to add, amend, modify or alter any grounds of appeal at the time of our before the hearing of the appeal. 2. Brief facts of the case are that the assessee is a company engaged in the business of providing hotel related services in several countries aroun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdictional High Court held that the payments for advertising, publicity and the sales promotion services rendered by the assessee, a company incorporated and tax resident in USAto Indian company, was advisement, publicity and sales promotion keeping in mind the mutual interests and in that context, the use of trademark, trade name etc. and other enumerated services referred to in the agreement with the assessee were incidental to main services and, therefore, the payments received were neither in the nature of royalty under section 9(1)(vi) of the Act, explanation 2, nor in the nature of 'Fee for Technical Services' (FTS) under section 9(1)(vii) of the Act, explanation 2, but business income and assessee not having any PE in India such b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeping in mind the mutual interests and in the context, the use of trademark, trade name etc. and other enumerated services referred to in the agreement with the assessee were incidental to main services and, therefore, the payments received were neither in the nature of royalty under section 9(1)(vi) of the Act, Explanation 2, nor in the nature of 'Fee for Technical Services' (FTS) under section 9(1)(vii) of the Act, Explanation 2, but business income and assessee not having any PE in India such business income was not taxable in India. 6. Further, on identical set of facts, in the case of Starwood (supra),Tribunaltook a consistent view following the above decision of the Hon'ble High Court for the AY 2010-11 and 2011-12, and such view wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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