https://www.taxtmi.com/caselaws?id=75810 A composite cross-border contract for automation system upgrade was treated as involving separate tax consequences for software/services and hardware. Customised software, installation, technical collaboration, system integration, testing, manuals and support were characterised as fees for included services under Article 12 of the India-US Tax Treaty and were taxable in India on the make-available standard. By contrast, the hardware portion, together with associated COTS software bundled with it, was treated as an outright offshore supply and excluded from Indian taxability. Correspondingly, tax had to be deducted at source on the taxable payments, with the withholding rate governed by Section 115A(1)(b)(BB) of the Income-tax Act, 1961. en-us Thu, 18 Mar 2010 00:00:00 +0530 Fri, 05 Jul 2013 12:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75810 A composite cross-border contract for automation system upgrade was treated as involving separate tax consequences for software/services and hardware. Customised software, installation, technical collaboration, system integration, testing, manuals and support were characterised as fees for included services under Article 12 of the India-US Tax Treaty and were taxable in India on the make-available standard. By contrast, the hardware portion, together with associated COTS software bundled with it, was treated as an outright offshore supply and excluded from Indian taxability. Correspondingly, tax had to be deducted at source on the taxable payments, with the withholding rate governed by Section 115A(1)(b)(BB) of the Income-tax Act, 1961. Case-Laws Income Tax Thu, 18 Mar 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75810