Design and drawing services whether taxable as royalty/FTS (fee for technical services) per Indo-Singapore DTAA Article 12(4)(b)

Facts:

Assessee had provided some design services to its Indian entity which was offered to tax as FTS as per Indo-Singapore DTAA Article 12(4) at 10% tax as per DTAA. Separately they also received design services consideration from Reliance Coporation IT Park Ltd. for its twin tower office structures. Assessee held that this consideration from RCITP is not taxable as it did not make available any services to be taxed as FTS/royalty as per the DTAA. AO and DRP sustained the addition of income. On higher appeal by the assessee - 

Held against the assessee that the design services manifested an exclusive transfer and utility to RCITP thus was held taxable under the DTAA.

Against:

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

CIT v. De Beers India Mineral (P) Ltd. (2012) 346 ITR 467 (Kar) : 2012 TaxPub(DT) 2504 (Karn-HC)

Gentex Merchants (P.) Ltd. v. DDIT (International Taxation) (2005) 94 ITD 211 (Kol.) : 2005 TaxPub(DT) 1409 (Kol-Trib) 

Ed. Note: Reference be made to  

DCIT v. Aedas Pte. Ltd./ITA No. 716/Del/2020 Asstt. Year: 2015-16/Del ITAT/Against the revenue/10-07-2023 : 2023 TaxPub(DT) 4380 (Del-Trib)

Case: Gensler Singapore (P) Ltd. v. JCIT 2023 TaxPub(DT) 5164 (Del-Trib)