Income from commercial information or output generated by ...

Software income from providing commercial info, not technical services, not 'Fees for Included Services' under tax treaty.

Case Laws Income Tax

September 27, 2024

Income from commercial information or output generated by accessing the assessee's software does not constitute Fees for Included Services (FIS) under Article 12(4)(b) of the tax treaty. The services provided are not highly technical in nature, as they merely involve transferring commercial information to the end-user without imparting any technical knowledge, design, process, or plan that provides an enduring benefit. The agreement explicitly states that all rights and tests of the application remain with the assessee, and the end-users are not given access to the source code, which constitutes technical knowledge under Article 12(4)(b). The 'make available' clause is not satisfied, as the contract only grants temporary access to the software during the subscription period, and the customer content is deleted upon expiry. The decision is in favor of the assessee.

View Source

← Previous Next →

Income from commercial information or output generated by ...

Software income from providing commercial info, not technical services, not 'Fees for Included Services' under tax treaty.

Case Laws Income Tax

September 27, 2024

You may also like:

The key points in the legal document are: Software licensing amounts do not qualify as Fees for Included Services under Article 12(4)(b) of the India-US DTAA, as the...

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

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...

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...

Income accrued In India - 'Royalty' or 'Fees for Technical Services' under Section 9(l)(vi) and 9(l)(vii) - the payment made by SCB to assessee- company does not fall...

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

TDS liability u/s 195 - Income accrued in India - fees for technical services - thus Solutions provided by the Applicant without human intervention cannot be treated as...

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...

Income deemed to accrue or arise in India - treatment of "Commission income" and receipts from "Subscription fee" - Assessee in publishing business receiving...

Income deemed to accrue or arise in India - FTS/FIS - receipts pertaining to supply of software (including AMC services) - The tribunal confirmed that software licensing...

The ITAT considered the issue of Fee for Technical Services (FTS) u/s 9(i)(vii) in a case involving reimbursement of connectivity charges. Assessing whether the services...

Income deemed to accrue or arise in India - fee for technical services / FTS - If it is of recurring annual fees, there is no question that assessee was making available...

Quick Updates: