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IT Support Remittances Not Taxable as Fees for Included Services Under India-USA Tax Treaty, Tribunal Rules.
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....Taxability of receipts as 'fees for included services' under the India-USA Double Taxation Avoidance Agreement (DTAA). The key points are: The Assessing Officer (AO) treated the remittances received by the assessee company from its sister concerns for providing IT support, maintenance services, etc., as 'fees for included services' (FIS) u/s 9(1)(vii)(b) of the Income Tax Act and taxed the same u/s 115A. However, the assessee argued that merely providing complicated services with a nexus to the compensation received does not constitute FIS under the DTAA unless it satisfies the definition of FIS, which involves making available technical knowledge, expertise, skills, know-how, or processes. The Appellate Tribunal agreed with the assessee's .........