https://www.taxtmi.com/caselaws?id=438599 The Tribunal determined that the fees received by the non-resident corporate entity from its Indian subsidiary for IT and SAP services do not qualify as Fees for Technical Services (FTS) under Article 12(4)(a) of the India-Portugal DTAA, as the services were distinct and not ancillary to the Technical Collaboration Agreement. The Tribunal applied the Most Favoured Nation (MFN) clause, adopting the more restricted definition of FTS under the India-Portugal DTAA. Consequently, the Tribunal allowed the appeals and deleted the disputed additions, ruling against the Assessing Officer's classification of the receipts as FTS. en-us Wed, 31 May 2023 00:00:00 +0530 Mon, 12 Aug 2024 16:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=438599 The Tribunal determined that the fees received by the non-resident corporate entity from its Indian subsidiary for IT and SAP services do not qualify as Fees for Technical Services (FTS) under Article 12(4)(a) of the India-Portugal DTAA, as the services were distinct and not ancillary to the Technical Collaboration Agreement. The Tribunal applied the Most Favoured Nation (MFN) clause, adopting the more restricted definition of FTS under the India-Portugal DTAA. Consequently, the Tribunal allowed the appeals and deleted the disputed additions, ruling against the Assessing Officer's classification of the receipts as FTS. Case-Laws Income Tax Wed, 31 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=438599