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2013 (12) TMI 308 - AT - Income TaxWhether payment made to consultant is covered by the definition of the term 'fees for technical services' under article 13 of the India-U.K. Double Taxation Avoidance Agreement – Held that:- As per article 13 of the India U.K. treaty, clause (c) of sub-article 4 the consultant, i.e., Texoplast Ltd. is required to transfer the fabric design to the assessee and those fabric designs are to be developed by the consultant – The party is required to provide detailed quantity progress report in writing to the assessee along with specific or new design developed - The services rendered by the consultant to the assessee-company are fees for technical services. – Fabric design is made available to the assessee and the assessee can apply such fabric design to process and produce garments and it can also sell and transfer such fabric design to outsider for consideration - There is no restriction on the assessee in this regard in the agreement between the assessee and the consultant - The services received by the assessee and provided by the consultant is fees for technical services - Tax is deductible by the assessee from the payments made by the assessee, to the consultant - Decided against assessee.
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