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2024 (3) TMI 1254 - AT - Income TaxIncome deemed to accrue or arise in India - Payments received by the assessee from it Indian customers on account of Centralized Services - Fee for Technical Services as defined u/s 9(1)(vii) of the Income Tax Act, 1961 or “Fee for included Services as defined u/Article 12(4)(a) of the India - US DTAA - absence of a PE in India - Assessee Company is a Company incorporated in United States of America (USA) and carries on the business of providing various hotel related services in several countries across the world - HELD THAT:- As decided in assessee own case [2023 (9) TMI 1448 - ITAT DELHI] for A.Y. 2018-19 and A.Y. 2019-20 we agree with the decision of learned first appellate authority in declaring the receipts from centralized services to be not in the nature of FTS/FIS. Fee received by the assessee under the Centralized Services Agreement cannot be treated as FIS either under Article 12(4)(a) or 12(4)(b) of the India–US Tax Treaty. As a natural corollary, it can only be treated as business income of the assessee. Hence, in absence of a PE in India, it will not be taxable. Decided in favour of assessee.
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