https://www.taxtmi.com/highlights?id=93692 ITAT held that the taxpayer's payments to a non-resident vendor were not subject to withholding under s.195 because the receipts constituted business profits under Article 7 of the DTAA, not fees for technical services under s.9(1)(vii)/Article 12. The vendor, a Norway tax resident, had no PE in India and its personnel stayed aggregate 29 days (< three months under Article 5(3)), so the activity did not create a taxable presence. The Tribunal concluded the contract was essentially for sale and repair/replacement of parts (a works contract), not FTS; accordingly the taxpayer was not an assessee-in-default under ss.201(1)/201(1A). Appeal allowed. en-us Thu, 30 Oct 2025 08:22:06 +0530 Thu, 30 Oct 2025 08:22:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=93692 ITAT held that the taxpayer's payments to a non-resident vendor were not subject to withholding under s.195 because the receipts constituted business profits under Article 7 of the DTAA, not fees for technical services under s.9(1)(vii)/Article 12. The vendor, a Norway tax resident, had no PE in India and its personnel stayed aggregate 29 days (< three months under Article 5(3)), so the activity did not create a taxable presence. The Tribunal concluded the contract was essentially for sale and repair/replacement of parts (a works contract), not FTS; accordingly the taxpayer was not an assessee-in-default under ss.201(1)/201(1A). Appeal allowed. Highlights Income Tax Thu, 30 Oct 2025 08:22:06 +0530 https://www.taxtmi.com/highlights?id=93692