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2018 (9) TMI 62 - AT - Income TaxTDS u/s 195 - remittance of USD 14,000 towards “training fees” to M/s Fair Isaac International Corpn. - India-USA Tax Treaty - P.E. in India - Held that:- We find ourselves to be in agreement with the contention advanced by the ld. A.R that as the training services provided by M/s Fair Isaac International Corpn did not “make available” any technology etc. to the assessee, therefore, the same was not covered by the meaning of “fees of included services” as defined in the India–USA tax treaty. Rather, we are of the considered view that rendering of the training services by M/s Fair Isaac International Corpn. would also assume the same character as that of the software license receipts, and as such would be in the nature of its business profits under Article 7 of the India – USA tax treaty. However, as M/s Fair Isaac International Corpn. did not have a PE in India, therefore, the training fees received by it also could not be subjected to tax under Article 7 of the India-USA Tax Treaty. As the assessee was under no obligation to deduct tax at source under Sec. 195 of the Act in respect of the training fees remitted to M/s Fair Isaac International Corpn, therefore, it could not be held as being in default within the meaning of Sec. 201 of the Act for having failed to deduct tax at source while remitting the said amount - Decided in favour of assessee
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