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2012 (8) TMI 199 - ITAT HYDERABADTreatment of repair work as rendered as technical services in view of the Section 9(1)(vii) - the repair works in question are the works done by the foreign companies abroad - Held that:- This is a case where the assessee obtained works orders from third parties and the items such as turbines are required to be repaired or refurbished and for this, these items are sent abroad to Saudi Arabia and Singapore for repairs and refurbishment by the non resident companies abroad - The payment for the repair work is made by assessee for carrying out the work and not for performing any technical service, since no intellectual aspect is involved in the repairs and refurbishment activity carried out by those foreign companies - as the assessee personnel do not accompany these items therefore, there is no involvement of assessee’s personnel in getting the items repaired or refurbished. On examining every activity undertaken it can be concluded that none of the works involve services of technical nature as activities involve assembly, disassembly, inspection, reporting and evaluation - as decided in Lufthansa Cargo India Private Limited V/s. Dy. CIT [2004 (6) TMI 273 - ITAT DELHI-B ] routine maintenance repairs are not FTS & that the payments made by the assessee to non-residents workshops outside India do not constitute payment of fees for managerial, consultancy or Technical services as defined in Explanation 2 to section 9(1)(vii) - in favour of assessee.
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