Fees for technical services- Taxability in India
Where the fee received by the assessee was for furnishing technical information then such fees was taxable as fees for technical services and it will make no difference that such information is furnished due to the knowledge, experience and expertise gained by the assessee as a result of business or trading activity; or tests, mapping etc. may be required for furnishing the said information. The nature and character of the information furnished for which the fee or consideration was paid is the relevant criteria for deciding whether or not Explanation 2 to section 9(1)(vii) was applicable.- Vide Director of Income Tax v. Rio Tinto Technical Services (2012) 43 (I) ITCL 171 (Del-HC)
Where the fee received by the assessee was for furnishing technical information then such fees was taxable as fees for technical services and it will make no difference that such information is furnished due to the knowledge, experience and expertise gained by the assessee as a result of business or trading activity; or tests, mapping etc. may be required for furnishing the said information. The nature and character of the information furnished for which the fee or consideration was paid is the relevant criteria for deciding whether or not Explanation 2 to section 9(1)(vii) was applicable.- Vide Director of Income Tax v. Rio Tinto Technical Services (2012) 43 (I) ITCL 171 (Del-HC)
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