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2014 (7) TMI 765 - AT - Income TaxNature of payment made for BSP link services rendered by ADP-GSI France – Requirement to deduct TDS on fees paid to technical services – Held that:- The payment made to ADP-GSI France for providing BSP link services to the Agents/Air lines was treated by the AO as in the nature of "fees for technical services" as per Article 13 of the treaty between India and France chargeable to tax in India @10% - As per Article 13(1), Royalty, fees for technical services and payments for lease of equipments arising in India and paid to resident of France may be taxed in France - royalty fees and payments may also be taxed in India at the maximum rate of 10% of the gross amount of such royalty, fees and payments – the contention of the assessee is accepted that there is nothing to show that the services provided by BSP link services provided by ADP-GSI France actually made available to the agents/Air lines any technical knowledge, experience, skill, know-how or processes so as to enable them to apply the technology – thus, there was no infirmity in the order of the CIT(A) holding that the payment made for BSP link services rendered by ADP-GSI France is not in the nature of fees for included services chargeable to tax in India – Decided against Revenue.
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