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

Case Laws     Income Tax

May 9, 2024

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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