https://www.taxtmi.com/caselaws?id=126756 A procurement fee paid for arranging purchases of bulk materials, special materials and spares was analysed under the contract and the applicable treaty, and was treated as commercial service income rather than royalty or fees for technical services. Because the recipient had no permanent establishment in India, the treaty position prevailed over the domestic charging rules under section 90(2), with no Indian taxability on that fee. The article also notes that deduction under section 80VV was unavailable on income assessed on a flat gross basis, and interest under section 217 was not chargeable where tax was deductible at source. An additional contractual amount of DM 18,566 was treated as accrued income for the year. en-us Fri, 24 Jan 1997 00:00:00 +0530 Mon, 31 Dec 2012 11:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=126756 A procurement fee paid for arranging purchases of bulk materials, special materials and spares was analysed under the contract and the applicable treaty, and was treated as commercial service income rather than royalty or fees for technical services. Because the recipient had no permanent establishment in India, the treaty position prevailed over the domestic charging rules under section 90(2), with no Indian taxability on that fee. The article also notes that deduction under section 80VV was unavailable on income assessed on a flat gross basis, and interest under section 217 was not chargeable where tax was deductible at source. An additional contractual amount of DM 18,566 was treated as accrued income for the year. Case-Laws Income Tax Fri, 24 Jan 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=126756