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2010 (3) TMI 115 - AUTHORITY FOR ADVANCE RULINGSAdministration of a program – DTAA with USA - services being provided by FICCI – fee for technical services - Federation of Indian Chambers of Commerce and Industry (“FICCI”) is a company registered under the Companies Act, 1956 - a job contract for administering DST-Lockheed Martin India Innovation Growth Programme 2009” (“IIGP for short) - The objective of this programme is to identify, award and accelerate innovative new Indian technologies into the market space. IIGP will help Indian innovators to find markets globally. The participants of the programme will receive professional business development assistance to facilitate access to US, Indian and global markets. Held that: - Institute of University of Texas, USA, is located in USA and it is liable to pay tax by reason of place of incorporation and the place of management, the said Institute has to be treated as resident of USA within the meaning of Article 4 of DTAA - On a consideration and analysis of the various services and assistance rendered by UT, we are unable to reach the conclusion that the payment received by UT under the Agreement would amount to ‘fee for included services’ within the meaning of para 4(b) of Art.12. Earlier, we have explained the true scope and meaning of the expression ‘make available’ occurring in para 4(b). Most of the services no doubt answer the description of technical and consultancy services. Few of them are managerial in nature. But, none of the technical/consultancy services and related activities undertaken by UT would amount to making available the technical knowledge, experience, skill, know-how or processes possessed by UT. - UT’s services and the consideration received therefore cannot therefore be brought within the ambit of Art.12.4 of DTAA. - Orientation towards business and inculcation of entrepreneurial outlook does not really amount to “making available” the technical knowledge, experience or skills of the experts of IC Institute - no income-tax is liable to be paid by UT (IC[2008 (11) TMI 9 - AUTHORITY FOR ADVANCE RULINGS) Institute on the payments received by it from FICCI - FICCI is not required to deduct tax at source.
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