The ITAT considered the taxability of income in India as Fees ...

Income accrual in India not taxable as FIS/FTS. No tech services provided. Addition deleted. Software sale not FTS.

Case Laws Income Tax

June 8, 2024

The ITAT considered the taxability of income in India as Fees for Included Service (FIS) or Fees for Technical Services (FTS) received by a non-resident corporate entity from its Indian subsidiary for management services. The AO failed to demonstrate that technical knowledge was made available by the assessee to the Indian subsidiary. The DRP mechanically endorsed the AO's view without proper examination. The ITAT directed deletion of the addition as FTS/FIS. Additionally, the ITAT found that the receipts from the sale of software to a bank were for software licenses, not services, and should not be treated as FTS. The ITAT held that the amount in dispute is not taxable as FTS and directed the AO to delete the addition.

View Source

← Previous Next →

The ITAT considered the taxability of income in India as Fees ...

Income accrual in India not taxable as FIS/FTS. No tech services provided. Addition deleted. Software sale not FTS.

Case Laws Income Tax

June 8, 2024

You may also like:

Income taxable in India or not - FTS/FIS - payments received by the assessee from its Indian customers on account of Centralized Services - absence of PE in India - The...

Income taxable in India - payments received from its India customers on account of Centralized Services - Fee for Technical Services - Fee for included services - The...

Taxability of receipts as 'fees for included services' under the India-USA Double Taxation Avoidance Agreement (DTAA). The key points are: The Assessing Officer (AO)...

Income taxable in India - screening and investigation services provided by the assessee to its customers in India - Royalty or Fees for Technical Services (FTS) - The...

Income deemed to accrue or arise in India - Fee for Technical Services (FTS)/ Fee for Included Services (FIS) - the services provided by the assessee under the marketing...

The assessee, a foreign company, earned network transportation fees from its Indian associated enterprise (AE), Damco India Private Limited (DIPL). The Assessing Officer...

TDS u/s 195 not deducted on payment to Everest Global Inc. for software training services as source of income located outside India and payment made for services outside...

Taxability of employee cost reimbursements as Fee for Technical Services (FTS) under the India-Japan tax treaty. The assessee, a Japanese company, seconded employees...

The court examined whether the receipts from services rendered by IMG to BCCI for IPL were taxable as Fees for Technical Services (FTS) under Article 13 of the India-UK...

Taxability of income in India - receipts from services rendered to Indian entities - Fee for Technical Services (FTS) - Despite the assessee's contention that the...

The assessee's income received from Indian customers as Fee for Technical Services (FTS)/Fee for Included Services (FIS) u/s 9(1)(vii) of the Act and Article 12(4) of...

The assessee received amounts from Indian customers for supplying software updates, patches, and on-call support services. The issue pertained to taxability of these...

Income deemed to accrue or arise in India - offshore supply of design and engineering inextricably linked with manufacturing and supply of equipment, not taxable as Fees...

Income taxable in India - cellular roaming charges - India-UK DTAA under Article 13(3) - Royalty - VIL already possessed the process used for providing roaming services...

Taxability as Fee for Included Service (FIS) u/A 12 of India-USA DTAA - As per Example 7 of the Memorandum of Understanding to India-USA DTAA, a receipt cannot be...

Quick Updates: