The assessee, incorporated under Canadian laws, rendered...

The assessee, incorporated under Canadian laws, rendered pre-clinical laboratory services to Indian customers in the pharmaceutical, medical device, and biotechnology industries. These services involved conducting in vitro and in vivo tests and trials to determine safe dosages and assess potential toxicity of new drugs before human clinical trials. The Indian customers provided samples for testing by the assessee. The Tribunal held that the pre-clinical laboratory services rendered by the assessee did not constitute 'making available' technical knowledge, experience, skill, know-how, or processes to the Indian customers. The utility of the services was limited to a report, which did not independently transfer technological knowledge enabling the clients to conduct future clinical tests. The clients had to continuously refer to the assessee for understanding the report. Therefore, the receipts from such services did not qualify as Fees for Included Services (FIS) or Fees for Technical Services (FTS) under the India-Canada Tax Treaty.