ITAT held that passenger system services provided by a US-based ...

US Company's Passenger System Services to Indian Airline Not Taxable as Technical Fees Under India-USA Tax Treaty

April 17, 2025

Case Laws     Income Tax     AT

ITAT held that passenger system services provided by a US-based company to an Indian airline do not constitute Fees for Technical Services (FTS) under Article 12 of India-USA DTAA. The tribunal determined that no specific technology was made available to the Indian entity, and the services were rendered using standard software supported by the service provider's data center. Consequently, the tribunal upheld the CIT(A)'s order, finding the receipts non-taxable in India, effectively dismissing the revenue department's contentions regarding taxation under section 9(1)(vii) of the Income Tax Act as procedurally academic.

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