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2016 (11) TMI 666 - AT - Income TaxServices rendered by the non-resident assessee company to Indian company - whether would fall within the ambit of ‘Fee for Technical Services (FTS)’ - DTAA - Held that:- As find from the nature of services rendered by the assessee to the Indian group company, there is no technology or technical knowhow, skills etc that were made available by the assessee in order to enable the Indian group company to function on its own without the dependence of the assessee. It is not in dispute that the agreement entered between Outotec Oyj and Outotec India Pvt Ltd is for an indefinite period and such services are provided on recurring basis by the assessee to Outotec India Pvt Ltd. Lot of force in find in the argument of the ld AR that had the technical knowhow, skills etc being made available by the assessee to Outotec India Pvt Ltd, then there would be no need for Outotec India Pvt Ltd to recourse to the recipient for these services. We also hold that the other services such as IT Infrastructure, IT administration (collectively referred to ‘IT Support Services’ ) also do not satisfy the ‘make available’ test as no technology , knowhow, skills etc were transferred to the recipient. We also hold that the repair and supervision services provided to few other Indian parties do not satisfy the make available test as these are routine repairs and supervisory services and there is no transfer of technology or skill or experience at the time of provision of such services by the assessee. The amounts received by the assessee from Outotec India Pvt Ltd does not qualify as FTS as per the DTAA. - Decided in favour of assessee
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