https://www.taxtmi.com/caselaws?id=427524 Payments to a Canadian service provider for bio-analytical and clinical research services were examined under the India-Canada DTAA and section 9(1)(vii) to determine whether they were fees for technical services and subject to withholding under section 195. The decisive test was whether the services made technical knowledge, skill or process available to the payer so it could apply them independently in future. As only final reports and results were supplied, with no transfer of methods, procedures or know-how, the make available condition was not met. The receipts were treated as business profits under Article 7 and, absent a permanent establishment in India, were not taxable in India; consequently, no tax was deductible at source and consequential default and interest could not stand. en-us Wed, 07 Sep 2022 00:00:00 +0530 Fri, 09 Sep 2022 13:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=427524 Payments to a Canadian service provider for bio-analytical and clinical research services were examined under the India-Canada DTAA and section 9(1)(vii) to determine whether they were fees for technical services and subject to withholding under section 195. The decisive test was whether the services made technical knowledge, skill or process available to the payer so it could apply them independently in future. As only final reports and results were supplied, with no transfer of methods, procedures or know-how, the make available condition was not met. The receipts were treated as business profits under Article 7 and, absent a permanent establishment in India, were not taxable in India; consequently, no tax was deductible at source and consequential default and interest could not stand. Case-Laws Income Tax Wed, 07 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=427524