Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Income Tax - Highlights / Catch Notes

Home Highlights May 2025 Year 2025 This

ITAT adjudicated a tax dispute involving technical services ...


Tax Dispute Resolved: Foreign Fabrication Charges Not Taxable Under Article 12(3) and 12(4)(a) Provisions

May 16, 2025

Case Laws     Income Tax     AT

ITAT adjudicated a tax dispute involving technical services income from an international transaction. The tribunal determined that fabrication charges received by a foreign entity were not taxable in India. Applying principles from a precedent case, the tribunal concluded that tax-efficient structuring of multinational group transactions does not automatically invalidate the arrangement. Specifically, the tribunal found that Article 12(3) and 12(4)(a) provisions could not be invoked to tax the income. Consequently, the tribunal upheld the assessee's plea and deleted the contested tax addition, rendering a decision favorable to the taxpayer.

View Source

 


 

You may also like:

  1. The ITAT ruled in favor of the taxpayer, determining that fabrication charges received could not be treated as "fees for technical services" under Article 12(4)(a) of...

  2. Tax credit under article 23(2) of India Japan Double Taxation Avoidance Agreement ['Indo Japanese tax treaty'] - on the peculiarities of Indo Japanese tax treaty...

  3. The assessee earned income from professional services rendered in foreign countries like Japan, Nepal, and Singapore. The Income Tax Appellate Tribunal (ITAT) examined...

  4. Income taxable in India - Management Support Charges - the fee received by the assessee under the Centralized Services Agreement cannot be treated as FIS either under...

  5. ITAT ruled in favor of the assessee, determining tax liability for services provided to Indian customers under India-USA DTAA. The tribunal held that income from domain...

  6. Taxability of income - Characterization of receipts - software sub-licence fee - the income in dispute, since can be classified under other Articles of the tax treaty,...

  7. The assessee received amounts from Indian customers for supplying software updates, patches, and on-call support services. The issue pertained to taxability of these...

  8. The assessee company made payments for IT service charges to a foreign entity without deducting tax at source (TDS) u/s 195. The Assessing Officer treated these expenses...

  9. Disallowance of making charges - If the making charges rate as determined by the Revenue at Rs.3/- per gram has to be considered, the aforesaid karigar’s net profit...

  10. Exemption under Section 3(B)(2-a) - Work contract - Assessee charged sales tax at 12% as against 4% on sales to the Government department - levy penalty confirmed - HC

  11. The Delhi High Court examined whether guarantee charges received by an appellant from its Indian subsidiaries are taxable in India. The Tribunal found that the...

  12. Income accrued in India - Fee for Technical/Included Services - whether the amount received by the assessee for various services, commonly known as centralized services,...

  13. Assessment of turnover of the applicant as per Section 4(3) of the VAT - levy of tax on turnover of sale has to be done in the manner provided in Section 4(3) of the Act...

  14. Income deemed to accrue or arise in India - Fee for Technical Services (FTS)/ Fee for Included Services (FIS) - the services provided by the assessee under the marketing...

  15. Income taxable in India - payments received from its India customers on account of Centralized Services - Fee for Technical Services - Fee for included services - The...

 

Quick Updates:Latest Updates