Offshore Design and Engineering Income Exempt from FTS Tax under India-Austria Treaty; Onshore Services Taxed Differently.

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....Income deemed to accrue or arise in India - offshore supply of design and engineering inextricably linked with manufacturing and supply of equipment, not taxable as Fees for Technical Services (FTS) under domestic law or India-Austria tax treaty. Offshore supply closely linked to offshore supply of plant and equipment, cannot be segregated as basic nature and character identical. Onshore supervisory services taxable as business profits under tax treaty, not as FTS on gross basis. Receipts connected to Permanent Establishment (PE), to be taxed on net basis under Article 7. Certain other supervisory fees taxable as FTS under Article 12(4) of tax treaty, irrespective of PE. Reimbursement of expenses from Indian group companies for group information and business services not taxable as FTS, being cost sharing without profit element.....