Make available test under India-Singapore DTAA bars FTS taxation for management support services absent independent technical capability.

Management support receipts from an Indian group company were held not taxable as fees for technical services under section 9(1)(vii) and Article 12(4) of the India-Singapore DTAA because, although the services were managerial and partly consultancy in nature, no material showed that they made available technical knowledge, experience, skill, know-how or process enabling independent application by the recipient. The Tribunal followed its earlier decision in the assessee's own case on identical facts. The TDS credit claim was left for verification by the Assessing Officer and granted for statistical purposes.

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Issues: (i) Whether the fee for management support services received by the assessee from the Indian group company was taxable as fees for technical services under section 9(1)(vii) of the Income-tax Act, 1961 and Article 12(4) of the India-Singapore DTAA. (ii) Whether credit for tax deducted at source was to be granted.

Issue (i): Whether the fee for management support services received by the assessee from the Indian group company was taxable as fees for technical services under section 9(1)(vii) of the Income-tax Act, 1961 and Article 12(4) of the India-Singapore DTAA.

Analysis: The services were held to be managerial and partly consultancy in nature, but the treaty applied only if such services made available technical knowledge, experience, skill, know-how or process enabling the recipient to apply the same independently. No material was shown to establish that the recipient acquired such technical capability. Applying the earlier decision in the assessee's own case and finding the facts to be identical, the services were not found to satisfy the make available condition under Article 12(4)(b).

Conclusion: The receipts from management support services were not taxable as fees for technical services and the issue was decided in favour of the assessee.

Issue (ii): Whether credit for tax deducted at source was to be granted.

Analysis: The assessee sought TDS credit for the amount claimed, and the matter was directed to be examined by the Assessing Officer in accordance with law.

Conclusion: The claim for TDS credit was allowed for statistical purposes in favour of the assessee.

Final Conclusion: The dispute was substantially resolved in favour of the assessee on the principal taxability issue, with the ancillary TDS credit matter left to be verified and granted in accordance with law.

Ratio Decidendi: Managerial or consultancy services are not taxable as fees for technical services under Article 12(4)(b) of the India-Singapore DTAA unless they make available technical knowledge, experience, skill, know-how or process enabling the recipient to apply it independently.

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