https://www.taxtmi.com/caselaws?id=211900 Payments for use of the dredger under the subcontract were held not to be royalty or fees for technical services because the dredger remained under the foreign enterprise's custody, control and supervision, with its own crew operating it, and the assessee acquired no right to use the equipment. The arrangement was only for execution of dredging work, so the sums were treated as hire charges for work performed and not as consideration for use of equipment under section 9(1)(vi) or the treaty provisions. As the amounts were not chargeable to tax in the recipient's hands, no obligation to deduct tax at source arose under section 195, and the assessee could not be treated as an assessee in default under section 201. The foreign enterprise's business income was also not taxable in India absent a permanent establishment. en-us Wed, 15 Feb 2012 00:00:00 +0530 Mon, 09 Apr 2012 08:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211900 Payments for use of the dredger under the subcontract were held not to be royalty or fees for technical services because the dredger remained under the foreign enterprise's custody, control and supervision, with its own crew operating it, and the assessee acquired no right to use the equipment. The arrangement was only for execution of dredging work, so the sums were treated as hire charges for work performed and not as consideration for use of equipment under section 9(1)(vi) or the treaty provisions. As the amounts were not chargeable to tax in the recipient's hands, no obligation to deduct tax at source arose under section 195, and the assessee could not be treated as an assessee in default under section 201. The foreign enterprise's business income was also not taxable in India absent a permanent establishment. Case-Laws Income Tax Wed, 15 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211900