https://www.taxtmi.com/caselaws?id=357927 Payment for designs and drawings supplied by a non-resident was treated as part of the cost of acquiring plant and machinery where the materials were indispensable for installation, operating and commissioning the plant, were not separately exploited, and the supplier retained the intellectual property rights. On those facts, the consideration did not constitute managerial, technical or consultancy services under Explanation 2 to section 9(1)(vii) of the Income-tax Act and was not fees for technical services under Article 12 of the India-Japan DTAA. The payment was therefore characterised as acquisition cost rather than taxable technical fees. en-us Thu, 01 Mar 2018 00:00:00 +0530 Mon, 02 Apr 2018 09:05:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357927 Payment for designs and drawings supplied by a non-resident was treated as part of the cost of acquiring plant and machinery where the materials were indispensable for installation, operating and commissioning the plant, were not separately exploited, and the supplier retained the intellectual property rights. On those facts, the consideration did not constitute managerial, technical or consultancy services under Explanation 2 to section 9(1)(vii) of the Income-tax Act and was not fees for technical services under Article 12 of the India-Japan DTAA. The payment was therefore characterised as acquisition cost rather than taxable technical fees. Case-Laws Income Tax Thu, 01 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357927