TDS on cross-border marketing services: petition challenged FTS characterisation and withholding liability, but appeal dismissed following precedent

Dispute concerns whether cross-border payments for marketing services to a US company constitute Fee for Technical Services (FTS) attractable to withholding tax under TDS provisions and IndiaUSA DTAA, given the foreign entity lacked a permanent establishment in India. The High Court had held the services could not be characterised as royalty or FTS to mandate TDS. The Supreme Court condoned delay but declined to disturb that approach, following prior Supreme Court precedent, and dismissed the special leave petition, leaving the High Court position intact.

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The Supreme Court of India in 2024 (1) TMI 560 - SC Order, with Hon'ble Mrs. Justice B.V. Nagarathna and Hon'ble Mr. Justice Ujjal Bhuyan presiding, condoned the delay in filing special leave petitions. The court dismissed the special leave petition in line with a previous order and disposed of any pending applications. The respondent did not appear in the case.

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