Repair and maintenance payments for aircraft engines not FTS under India-Canada and India-Singapore DTAAs; no technology transfer

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The ITAT held that the taxpayer's receipts for repair and maintenance of aircraft engines from Indian customers do not constitute Fees for Technical Services (FTS) under the India-Canada DTAA (and India-Singapore DTAA) because the Department failed to establish that technical knowledge, skills or know-how were transferred so as to "make available" technology to the recipient. The Tribunal found no enduring benefit or ability of the recipient to use the technology independently post-contract. Applying the same reasoning to all similar repair and maintenance receipts for the year, the ITAT concluded those receipts are not taxable as FTS in the taxpayer's hands.....