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The Tax Publishers Architectural design services - whether Fee for included services under Article 12(4) of Indo-US DTAA and taxable in India *Facts:* Assessee a US resident multidisciplinary firm provided customized architectural, structural design services to an AOP in India for building the State of Unity - Sardar Patel Statute for which it had earned income from India. Revenue's case was that these fell in the scope of Article 12(4) of Indo-US DTAA as fee for included services and taxed the same accordingly. DRP upheld the AO's views. On further appeal - Held in favour of the assessee that the design and structural consultancy services were customized and did not "make available" any exploitable worthy technology to the recipient. It is outside the scope of tax as fee for included services of Indo-US DTAA. *Applied:* DCIT v. Forum Homes (P) Ltd. (2022) 192 ITD 184 (Mum. Trib.) Gera Developments P. Ltd. v. DCIT (2016) 160 ITD 439 (Pune ITAT) : 2016 TaxPub(DT) 3742 (Pune-Trib) *Ed. Note:* Reference be made to Flash no. 194/2023/DCIT v AedasPte. Ltd./ITA No. 716/Del/2020 Assessment Year: 2015-16/Del ITAT/Against the revenue/10-07-2023 for similar judgment but under Indo-Singapore DTAA. *Case:* Michael Graves Design Group Inc. v. DCIT 2023 TaxPub(DT) 4435 (Del-Trib)

The Tax Publishers

Architectural design services - whether Fee for included services under Article 12(4) of Indo-US DTAA and taxable in India

Facts:

Assessee a US resident multidisciplinary firm provided customized architectural, structural design services to an AOP in India for building the State of Unity - Sardar Patel Statute for which it had earned income from India. Revenue's case was that these fell in the scope of Article 12(4) of Indo-US DTAA as fee for included services and taxed the same accordingly. DRP upheld the AO's views. On further appeal -

Held in favour of the assessee that the design and structural consultancy services were customized and did not "make available" any exploitable worthy technology to the recipient. It is outside the scope of tax as fee for included services of Indo-US DTAA.

Applied:

DCIT v. Forum Homes (P) Ltd. (2022) 192 ITD 184 (Mum. Trib.)

Gera Developments P. Ltd. v. DCIT (2016) 160 ITD 439 (Pune ITAT) : 2016 TaxPub(DT) 3742 (Pune-Trib)

Ed. Note: Reference be made to Flash no. 194/2023/DCIT v AedasPte. Ltd./ITA No. 716/Del/2020 Assessment Year: 2015-16/Del ITAT/Against the revenue/10-07-2023 for similar judgment but under Indo-Singapore DTAA.

Case: Michael Graves Design Group Inc. v. DCIT 2023 TaxPub(DT) 4435 (Del-Trib)