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2010 (8) TMI 9 - AAR - Income TaxAccreditation function - Conformity Assessment Bodies (CAB's) - Nature of service - Fees for technical services (FTS) - Section 9(1)(vii) - Sections 115A(1)(b)(AA) or (BB) 115A(1)(b)(AA) or (BB) - TDS - DTAA with Australia - Held that: - there is no transfer of any skills or technical knowledge or experience, or process or know-how to the CABs on account of grant of accreditation to those entities. The skills, expertise or know-how possessed by the applicant for the grant of accreditation certificate cannot be said to have been made available to the CAB who gets the accreditation. What the applicant does is to evaluate and assess the capabilities, competence, potential and infrastructure possessed by the CAB in the light of certain set standards and parameters. - The fact that the CAB is apprised of its shortcomings and deficiencies, if any, and that the CAB is given an opportunity to rectify, if possible, does not reasonably lead to the inference of 'making available' the skills, technical knowledge etc. possessed by the applicant to the CAB. CAB will, of course, be benefited by the accreditation certificate issued by the applicant but that fact has hardly any bearing on the point whether "make available" criterion has been satisfied or not. Viewed from any angle, it cannot be said that the applicant is imparting any knowledge or skills to the CABs which are utilized by the CAB in conducting its business. - The activities of the application are not falling under FTS - Since there is no PE in India, such profits can not be subject to tax in India - No withholding tax in India
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