https://www.taxtmi.com/caselaws?id=404693 Under the India-UK treaty, management support, legal, financial, human resource and IT services were examined against the narrower treaty definition of fees for technical services and the make available test. Most support services were treated as technical or consultancy in nature, but only the direct technical advice, support and management including implementation component was found to transmit technical knowledge so that the recipient could apply it independently; that component was taxable as fees for technical services. The same payments were not royalty because they represented service fees, not consideration for use of intellectual property or equipment. In the absence of a proven service permanent establishment in India, the balance of the receipts was not business income, and withholding under section 195 applied only to the taxable technical service component. en-us Thu, 04 Feb 2021 00:00:00 +0530 Wed, 07 Apr 2021 18:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404693 Under the India-UK treaty, management support, legal, financial, human resource and IT services were examined against the narrower treaty definition of fees for technical services and the make available test. Most support services were treated as technical or consultancy in nature, but only the direct technical advice, support and management including implementation component was found to transmit technical knowledge so that the recipient could apply it independently; that component was taxable as fees for technical services. The same payments were not royalty because they represented service fees, not consideration for use of intellectual property or equipment. In the absence of a proven service permanent establishment in India, the balance of the receipts was not business income, and withholding under section 195 applied only to the taxable technical service component. Case-Laws Income Tax Thu, 04 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404693