https://www.taxtmi.com/caselaws?id=218660 Payments to a US subsidiary were tested under Article 12.4 of the Indo-US DTAA and section 195 of the Income-tax Act to determine whether they constituted fees for technical or included services. The marketing agreement and overseas services agreement did not make available technical knowledge, skill, know-how, or processes to the Indian payer, so no tax deduction at source was required and disallowance under section 40(a)(i) failed for those payments. The offshore development facilitation agreement required further factual examination because some activities could involve technical elements, but mere performance of technical work is insufficient unless the recipient can independently apply the knowledge in future; that issue was remitted for fresh consideration. en-us Thu, 11 Oct 2012 00:00:00 +0530 Thu, 22 Nov 2012 10:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218660 Payments to a US subsidiary were tested under Article 12.4 of the Indo-US DTAA and section 195 of the Income-tax Act to determine whether they constituted fees for technical or included services. The marketing agreement and overseas services agreement did not make available technical knowledge, skill, know-how, or processes to the Indian payer, so no tax deduction at source was required and disallowance under section 40(a)(i) failed for those payments. The offshore development facilitation agreement required further factual examination because some activities could involve technical elements, but mere performance of technical work is insufficient unless the recipient can independently apply the knowledge in future; that issue was remitted for fresh consideration. Case-Laws Income Tax Thu, 11 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218660