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TMI Blog2023 (3) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... nder India-Netherlands DTAA. Even, assuming for the sake of argument that payment received for certain kind of services is in the nature of FTS, however, the make available condition needs to be satisfied. Neither the Assessing Officer nor learned DRP have established on record that by rendering the services, the assessee has made available technical knowledge, know-how, skill etc. to the recipient of services, which would have enabled the recipient of such services to utilize it independently without the aid and assistance of the assessee. Thus, in our view, the make available condition is not satisfied. Therefore, the payment received cannot be treated as FTS under Article-12(5) of India Netherlands DTAA. Hence, we are inclined to dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Assessing Officer noticed that in the year under consideration, assessee had provided business support services to its Indian group entity and received payment of Rs.1,49,02,771. However, the amount received was not offered as income on the plea that it is in the nature of business profit and in absence of a Permanent Establishment (PE) in India, it is not chargeable to tax. 5. After considering the submissions of the assessee, the Assessing Officer was not convinced. He observed that the payment received by the assessee will qualify as FTS, both under Section 9(1)(vii) of the Act as well as under Indian-Netherlands DTAA as they are in the active of management and consultancy services. Accordingly, he brought to tax the amount at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, including benefits and related services; iv ) Environmental Health and Safety; v ) IT Services; vi) Management Services; vii) Marketing Services; viii) Legal Services; ix) Tax Services; x ) Supply Chain Management Services, including purchasing logistics and procurement; xi ) Quality Management Services. 12. From the nature of services rendered, it is very much evident that they are mostly in the nature of managerial services. Reading of Article-12 (5) of India-Netherlands DTAA reveals that it does not include managerial services within FTS. Therefore, the payment received by the assessee cannot be treated as FTS under IndiaNetherlands DTAA. Even, assuming for the sake of argument that payment received for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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