Cross-Border Services Exempted: Section 197 Ruling Clarifies Technical Services and Royalty Definitions in India-UK Tax Treaty

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....HC allowed the petitioner's application under Section 197, ruling that cross-cost charges from associated enterprises do not constitute technical services or royalties under India-UK DTAA. The court found no transfer of technical knowledge, rights, or software copyrights, thereby rejecting the Assessing Officer's taxation claim. The HC directed the AO to issue a 'nil' withholding tax certificate, emphasizing that the services did not satisfy the conditions for Fees for Technical Services (FTS) or royalty provisions.....