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2014 (9) TMI 706 - DELHI HIGH COURTCommission paid to non-resident for procuring export orders – Technical service or not u/s 9(i)(vii) - Whether the Tribunal was right in holding that the commission paid to M/s. Agenta World Trading and Consulting Establishment for procuring export orders, is not fee for technical services u/s 9(i)(vii) – Held that:- Commission paid for arranging of export sales and recovery of payments cannot be regarded as consultancy service rendered by the non-resident - The non-resident had not rendered any consultation or advice to the respondent-assessee - The non-resident no doubt had acquired skill and expertise in the field of marketing and sale of automobile products, the Tribunal and the CIT(A) had noticed that the non-resident did not act as a consultant, who advised or rendered any counseling services - The skill, business acumen and knowledge acquired by the non-resident were for his own benefit and use - The non-resident procured orders on the basis of the said knowledge, information and expertise to secure ‘their’ commission - There was no element of consultation or advise rendered by the non-resident to the respondent-assessee. The technical services consists of services of technical nature, when special skills or knowledge relating to technical field are required for their provision, managerial services are rendered for performing management functions and consultancy services relate to provision of advice by someone having special qualification that allow him to do so – these requisites and required necessities are not satisfied - Indeed, technical, managerial and consultancy services may overlap and it would not be proper to view them in water tight compartments – Decided against revenue.
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