Taxability of income in India - receipts from services rendered ...

Income from Services to Indian Entities Classified as Taxable Fee for Technical Services Under India-Sweden DTAA.

May 9, 2024

Case Laws     Income Tax     AT

Taxability of income in India - receipts from services rendered to Indian entities - Fee for Technical Services (FTS) - Despite the assessee's contention that the services were routine and standard, the Tribunal found them to be managerial, technical, or consultancy services falling under the definition of FTS as per the India-Sweden DTAA. - The Tribunal rejected the argument of the rule of consistency, emphasizing that each assessment year is independent, and the Assessing Officer has the prerogative to re-examine the nature of income. It concluded that the receipts were indeed FTS as defined under the treaty, hence taxable.

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