TMI Blog2022 (12) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... c to functions being performed by the employees. This training may improve the skills of the employees but it does not involve transfer of any technology which is made available to the assessee for its future use. In terms of Article-12 of DTAA, fees for technical services include managerial, technical or consultancy services if such services are ancillary and subsidiary to the application or enjoyment of the right, property or information or it make available technical knowledge, experience, skill, know-how or processes, which enables the person acquiring the services to apply the technology contained therein or it consist of the development and transfer of a technical plan or technical design but excludes any service that does not enabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... default under section 201 of the Act in respect of the remittances made to the non-resident Standard Chartered Bank (SCB), Singapore. 2.2 The CIT(A) ought to have appreciated that the remittances made to the nonresident SCB, Singapore were not taxable in India and as such there is no obligation to deduct taxes under section 195 of the Act. 2.3 The CIT(A) ought to have appreciated that the non-resident SCB, Singapore does not have any Permanent Establishment (PE) in India and as such the income earned by the non-resident would not be taxable in India. 2.4 The CIT(A) ought to have appreciated that training towards soft skills like leadership, general communication, team work etc. cannot be termed as technical in nature. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hearing of the appeal. As is evident, the sole substantive ground that fall for our consideration is whether the assessee could be held as assessee-in-default for want of tax deduction at source (TDS) on certain payments. 2. The impugned demand against the assessee stem from the fact that the assessee paid an amount of Rs.141.75 Lacs to another Singapore based entity i.e., M/s Standard Chartered Bank. The payment was pursuant an agreement whereby the assessee group established a training center in Singapore to impart soft skill training like leadership skills, communication etc. A group wanting to avail the services could recommend the selected employees to undergo the training which is mainly through online portal. This is st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a general training which would not fit into the definition of managerial, technical or consultancy services as held in various decision of coordinate benches of Tribunal. Further, make available clause would be satisfied only when the services results in transmitting technical knowledge so that the payee could derive an enduring benefit and utilize the knowledge or know how on his own in future without the aid of service provider. In the present case, since there was no transfer of technology but it was a case of rendering the general training services, the make available clause was not satisfied. The decision of Ahmedabad Tribunal in ITO vs. Veeda Clinical Research (P) Ltd. (35 Taxmann.com 577) rendered on similar factual matrix was al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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