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2023 (3) TMI 422 - HC - Income TaxTDS u/s 195 - payments made by the assessee for marketing services to the US Company as taxable in India as FTS [Fee for Technical Services] - US Company does not have any permanent establishment in India - order under Section 201(1) & 201(1A) - India- USA DTAA - Revenue’s case is payments made to the US Company for marketing services take the character of FTS and chargeable to tax in India - according to the Revenue the royalties and fees for included services may also be taxed in the Contracting State - Tribunal held that the services received by the assessee cannot be considered as ‘Royalty’ or ‘Fee’ for included services to deduct TDS - HELD THAT:- In the case on hand, the services have been rendered in USA. In contradistinction in the case of GVK Industries Limited [2015 (2) TMI 730 - SUPREME COURT] the advice of a Company called NRC [Non-Resident Company] was taken by GVK Industries for financial structure and with its advice GVK Industries had approached Indian Financial Institutions with IDBI [Industrial Development Bank of India] Bank acting as lead financier for its Rupee loan requirement and for a part of its foreign currency. In view of the admitted fact that the services were utilized in USA, we are persuaded to accept the authority in Lufthansa’s Case [2015 (5) TMI 873 - DELHI HIGH COURT] Therefore, in our considered opinion, the findings returned by the ITAT do not call for any interference. Decided against revenue.
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