9911796707
TMI Blog2021 (9) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... nagement ranging inter alia from ticketing, reservation, marketing, advertising, operation, administration, catering, network support services, Starwood Portal Services, imparting of skill sets through trainings etc. were not taxable as "Fee for Technical Services" (FTS) within the meaning and scope of section 9 of the Income Tax Act, 1961 as well as Article 12 of the India-US Double Taxation Avoidance Agreement (DTAA)." 3. M/s. Starwood Hotels and Resorts Worldwide Inc. i.e. the assessee Company is incorporated in USA and carries on the business of providing various centralized services to the hotels in several countries across the world. During the year under consideration, the appellant had provided worldwide marketing and advertising s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. M/s. Sheraton International Inc. wherein the similar payments were also held to be covered by the definition of 'fees for technical services' as DTAA and as per Explanation 2 of section 9(1)(vii) of the Act, being a consideration for the rendering of technical, managerial and consultancy services. The revenues received from rendering services of advertisement, networking and promotion was also held to be taxable as fees for technical services. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee. 5. At the time of hearing, the Ld. AR submitted that for immediately preceding year i.e. Assessment Year 2013-14, the identical issue of FTS which was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices rendered by the assessee, a company incorporated and tax resident in USA to Indian company, was advisement, publicity and sales promotion keeping in mind the mutual interests and in the context, the use of trademark, trade name etc. and other enumerated services referred to in the agreement with the assessee were incidental to main services and, therefore, the payments received were neither in the nature of royalty under section 9(1)(vi) of the Act, Explanation 2, nor in the nature of 'Fee for Technical Services' (FTS) under section 9(1)(vii) of the Act, Explanation 2, but business income and assessee not having any PE in India such business income was not taxable in India. 6. Further, on identical set of facts, in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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