TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the sales commission received by the assessee from its Indian affiliate was taxable in India as fees for included services under Article 12(4) of the India-USA DTAA and section 9(1) of the Income-tax Act, 1961, or was only sales commission not chargeable to tax in India.
Analysis: The services rendered under the marketing agreement were found to be marketing and liaison functions, namely identifying customers, understanding customer requirements, and communicating those requirements to the Indian entity for project execution. The assessee was not a party to the end-customer contracts, and the commission was paid as a percentage of sales for both existing and new customers. On these facts, the services were held to be distinct from technical or knowledge-transfer services and did not satisfy the character of fees for included services under Article 12(4) of the India-USA DTAA.
Conclusion: The sales commission was not taxable in India as fees for included services and was to be treated only as sales commission.
Ratio Decidendi: Marketing and liaison activities that merely identify customers, ascertain requirements, and pass them on for execution do not constitute fees for included services unless they amount to technical services covered by the treaty test applicable to such receipts.
TaxTMI 
TaxTMI 
