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2013 (8) TMI 443 - AT - Income TaxFees for technical services - Fees received for consulting and engineering services - Article 12 - DTAA with USA - Held that:- Technical services provided by the assessee in the shape of technical plans, designs, projects, etc. are nothing but blueprints of the technical side of mega power projects. Admittedly such services are rendered at a pre-bid stage. It is quite natural that such technical plans etc. are meant for use in future alone if and when L&T takes up the bid for the installation of the power project. When the otherwise technical services provided by the assessee are of such a nature which are capable of use in future alone - there is no infirmity in the impugned order holding that the assessee received consideration for making available technical services within the meaning of Article 12 of the DTAA. - Decided against assessee. Interest u/s 234B - Held that:- assessee is tax resident of USA. Its entire income is liable for deduction of tax at source in India. In that view of the matter, it is obvious that there can be no chargeability of interest u/s 234B of the Act - Following decision of D.I (International Taxation) VS. NGC Network Asia Ltd [2009 (1) TMI 174 - BOMBAY HIGH COURT] - Decided against assessee.
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