https://www.taxtmi.com/caselaws?id=6574 Post-sale hardware repair and replacement payments under the 2003 contract were treated as business income, not royalties or fees for included services, and were therefore not taxable in India absent a permanent establishment. Deputation of an engineer to India for installation and testing was held to be incidental to contract performance and did not create a permanent establishment in India, so Indian taxation was again unavailable. By contrast, software repair and modification payments were characterised as fees for included services under the treaty and were taxable in India. The ruling thus granted relief on hardware repair income and on the PE issue, but upheld taxability of the software maintenance consideration. en-us Wed, 15 Dec 2004 00:00:00 +0530 Thu, 15 Jan 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6574 Post-sale hardware repair and replacement payments under the 2003 contract were treated as business income, not royalties or fees for included services, and were therefore not taxable in India absent a permanent establishment. Deputation of an engineer to India for installation and testing was held to be incidental to contract performance and did not create a permanent establishment in India, so Indian taxation was again unavailable. By contrast, software repair and modification payments were characterised as fees for included services under the treaty and were taxable in India. The ruling thus granted relief on hardware repair income and on the PE issue, but upheld taxability of the software maintenance consideration. Case-Laws Income Tax Wed, 15 Dec 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6574