https://www.taxtmi.com/caselaws?id=335340 Payments made to the Malaysian subsidiary for clinical trials, research and development, and related expenditure were treated as fees for technical services under the Income-tax Act and Article 13 of the India-Malaysia DTAA. The Tribunal rejected the argument that the amounts were mere reimbursements without income element, finding that the subsidiary's clinical trial and research activities constituted technical services. As the sums were chargeable to tax in India, the payer was required to deduct tax at source under section 195, and failure to do so justified liability under sections 201(1) and 201(1A). en-us Fri, 16 Sep 2016 00:00:00 +0530 Wed, 30 Nov 2016 12:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335340 Payments made to the Malaysian subsidiary for clinical trials, research and development, and related expenditure were treated as fees for technical services under the Income-tax Act and Article 13 of the India-Malaysia DTAA. The Tribunal rejected the argument that the amounts were mere reimbursements without income element, finding that the subsidiary's clinical trial and research activities constituted technical services. As the sums were chargeable to tax in India, the payer was required to deduct tax at source under section 195, and failure to do so justified liability under sections 201(1) and 201(1A). Case-Laws Income Tax Fri, 16 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335340