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of <h1>Delhi High Court Rules IPL Consultancy Fees Not Taxable as FTS u/s 9(1)(vii) Due to DTAA Provisions.</h1> The Delhi High Court addressed the taxability of fees received by a non-resident entity (IMG) for consultancy services provided to the Board of Control for Cricket in India (BCCI) related to IPL tournaments held outside India. The Court examined whether these fees qualified as 'Fees for Technical Services' (FTS) under the India-UK Double Taxation Avoidance Agreement (DTAA) and Section 9(1)(vii) of the Income Tax Act. It concluded that the 'make available' condition for FTS was not met, as there was no transfer of technical knowledge. The Court determined the fees were not taxable under Section 9(1)(vii) due to the exception for services utilized for earning income from sources outside India. The income was correctly taxable under Article 7 of the DTAA as business profits attributable to IMG's Service Permanent Establishment in India. This ruling emphasizes the importance of the territorial nexus principle and clarifies the interpretation of the 'make available' condition in international taxation.
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