TaxTMI 
TaxTMI 
TaxTMI 
2013 (2) TMI 603
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....amounting to British Sterling Pound 25,000 is in nature of royalty I fees for technical services and accordingly is liable for deduction of tax at source at the rate of 15%. 2. The assessee hereby reserves the right to add to, alter or amplify the above ground of appeal reserves the right to add to, altar, or amplify the above ground of appeal." Additional Ground of Appeal filed by the assessee reads as under: "1. Without prejudice to the main ground of appeal, the assessee submits that the Assistant Director of Income-tax erred in directing the assessee to deduct tax at source on fees for technical services @ 15% against the correct rate of 10% as prescribed in section 115A(1)(b)(BB)." 2. Assessee-company, engaged in the business of ma....
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....d that the assessee had utilised the technical services of the Xenia for the development of a technical plan/design for a sophisticated printer, that it had also utilised the technical services of Xennia to develop four different inks, that the assessee was specifically charged by Xennia for the technical services rendered with regard to designing the printer, that manufacturing cost of the printer was separately paid, that 25,000 British Sterling Pound were paid only for the technical services, that intellectual property developed from the technical services (intellectual right over the design of the printer) was owned by the assessee, that the contract was not only for purchase of machinery and it was also for acquiring the technology fro....
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....wed to use the formula outside India by the appellant, that payment was for entire procedure, that even if there was use of Intellectual Property it existed at the end of the project, that the project has three phases. 3.1.1 With reference to the additional ground, it was submitted that even if tax was to be deducted, it should be deducted @ 10% and not at 15% from the provisions of Section 115 A of the Act. 3.2 Departmental Representative (DR) submitted that the entire agreement was for Fees for Technical Services (FTS),that services were made available by the supplier to the assessee, that the revised agreement proved that product specified by the assessee was prepared by the supplier, that it was not a purchase simplicitor, that techni....
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....for 2 wheelers. 8.7 In the event that, for whatever reason, the Client does not wish to maintain the Foreground IP the client shall notify Xennia and offer to transfer the Foreground IP to Xennia or terms to be agreed between the parties. 8.8 Xennia warrants that the IP licensed by Xennia to the client in the course of the services does not infringe the rights of any third parties. In addition will not undertake any assignment for any company in the world unless the party agrees not to introduce this technology/products employing this technology. 8.9 Xennia warrants that it shall not undertake any assignment from any India Company engaged in manufacture and sale of two wheelers, three wheelers or four wheelers for a period of 36 months f....