Treaty make available test excludes management support charges from fees for technical services where no technical knowledge is transferred.

Management support charges under the India-Singapore treaty were held not to constitute fees for technical services because the services, though managerial and consultancy in nature, did not satisfy the treaty's make available test. The Tribunal also found that the support arrangement was independent of the brand licence contracts, so the receipts could not be characterised as ancillary and subsidiary to the royalty stream. The amounts were therefore treated as business income, and the transfer of the addition was deleted in favour of the assessee.

---

---

Issues: Whether the management support charges received by the assessee were taxable as fees for technical services under Article 12 of the India-Singapore Double Taxation Avoidance Agreement, including on the basis that the services made available technical knowledge or were ancillary and subsidiary to the brand licence arrangement.

Analysis: The prior decisions in the assessee's own case were followed. The services under the management support arrangement were held to be managerial and consultancy in character, but they did not satisfy the make available requirement. The arrangement was also found to be independent of the brand licence contracts and not ancillary and subsidiary to the royalty stream. The Tribunal therefore treated the receipts as business income rather than fees for technical services.

Conclusion: The management support charges were not taxable as fees for technical services under Article 12(4)(a) or Article 12(4)(b) of the India-Singapore Double Taxation Avoidance Agreement, and the addition was deleted in favour of the assessee.

Ratio Decidendi: Managerial or consultancy services are not taxable as fees for technical services unless they satisfy the treaty make available test, and they cannot be brought within the ancillary and subsidiary limb when the service arrangement is independent of the royalty contract.

---