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2019 (7) TMI 1750 - AAR - Income TaxAdvance ruling - Fees for technical services or business income taxable in India - Payment receivable for various services in terms of the services agreement - chargeable to tax under the Act read with India-UK DTAA? - interpreting the term ‘make available’ - Services rendered are included in the "fees for technical services" (FTS) or not? - rendering the services as per agreement did not make available the technical knowledge and the experience possessed by it - HELD THAT:- The nature of services rendered in this case were 'corporate head office services'; 'divisional global services'; and 'divisional regional services' which related to financial, executive, marketing and administrative matters. In view of the decision as given in this case, this does not support the cause of the revenue. When we examine the facts of the present case on the above yardstick of ‘make available’ as decided in the case of Intertek [2008 (11) TMI 9 - AUTHORITY FOR ADVANCE RULINGS], it is found that the nature of services in this case are such that the technical knowledge, skills, etc., was not passed on and did not remain with the recipient of the service. Nature of services rendered in this case is found to be identical with the services rendered in the case of Ernst & Young (P). Ltd. [2010 (3) TMI 108 - AUTHORITY FOR ADVANCE RULINGS], relied upon by the Applicant. Applicant while rendering the services as per agreement did not make available the technical knowledge and the experience possessed by it. Thus we hold that the consideration paid for services rendered by the applicant is not covered by fee for technical services in terms of Article 13.4 of Indo-UK Tax Td. Ruling:- Ques.1 The payment receivable by the Applicant from DTZ International Property Advisers Private Limited (hereinafter referred to as “DTZ India”) for various services in terms of the services agreement dated 17th February 2011 is not in the nature of “Fee for Technical Services” under Article-13.4 of India-UK Tax Treaty as the services rendered by the non-resident company do not meet the requirement of ‘make available’ under the Treaty. The payment will also not be treated as business income taxable in India in terms of India-UK Tax Treaty as the non-resident company does not have any PE in India. Que.2 As the answer to question No.1 is in negative, DTZ India is not liable to deduct tax at source under section 195 of the Act on the amount payable to DTZ UK in terms of the services agreement dated 17th February 2011.
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