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2018 (4) TMI 460 - AAR - Income TaxNature of income derived - ‘Royalty’ - Services provided by the Applicant to ONGC - whether to be construed to be in the nature of ‘Fees for Technical Services’ (‘FTS’) under section 9(1)(vii) - DTAA between India and UAE - PE in India - Held that:- The consideration for services provided by the Applicant to ONGC will not be construed to be in the nature of ‘Fees for Technical Services’ under section 9(1)(vii) of the Act. The consideration for services provided by the Applicant will not be construed to be in the nature of ‘Royalty’ under section 9(1)(vi) of the Act and/ or under Article 12 of the India UAE DTAA. The Applicant has a Permanent Establishment in India under Article 5 of the India UAE DTAA, in respect of its contract with ONGC. The income of the Applicant earned from its contract with ONGC would be taxable in India as business income. The income derived by the Applicant in respect of the contract with ONGC will be computed in accordance with provisions of section 44BB of the Income tax Act, 1961.
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