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2014 (1) TMI 886 - AT - Income TaxObligation to deduct TDS u/s 201 r.w. 195 of the Act Payments made for providing in-house training and market awareness and development training to employees Held that:- The decision in of DIT v. Guy Carpenter & Co Ltd [2012 (5) TMI 31 - DELHI HIGH COURT] and CIT v. De Beers India Pvt. Ltd [2012 (5) TMI 191 - KARNATAKA HIGH COURT] followed - the training services rendered by the service provider are general in nature as the training is described as 'in house training of IT staff and medical staff' and of 'market awareness and development training' - this training does not involve any transfer of technology - in order to successfully invoke the coverage of training fees by 'make available' clause in the definition of fees for technical services, the onus is on the revenue authorities to demonstrate that these services do involve transfer of technology - That onus in not at all discharged by the Assessing Officer, or even by the learned Departmental Representative. When case of the revenue authorities fails on the tests of the treaty provisions, there is no occasion at all for their leaning upon the provisions of the Income Tax Act - The case of the revenue authorities does not succeed on the provisions of the tax treaty as there is nothing to establish that there is any transfer of technology thus, the fees for training services of general nature, which does not seem to involve any transfer of technology, cannot be brought to tax under section 13(4)(c) of India UK tax treaty - the conclusions arrived at by the CIT(A) upheld Decided against Revenue.
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