Taxability of management fees, whether it "makes available " something to be taxed as FTS under Into-Singapore DTAA Article 12(4)(b).

Facts:

Assessee an international freight forwarding and logistics company had rendered management services of various types to its AE in India. It was claimed exempt under the Indo-Singapore DTAA. It was the case of the revenue that these were taxable as royalty/FTS under the Indo-Singapore DTAA Article 12(4). On appeal the CIT(A) held that Management Support Services and Management Support, Finance and Treasury functions, Information Technology Support, Human Resources and Administrative Support and Legal Support all did not make available any technology to be taxed as FTS under the DTAA. But the services of Marketing and Sales Operations and Standardization were held to be making available technology/process which was held taxable under the DTAA. On appeal by the revenue and by the assessee for 5 assessment years 2010-11/2011-12/2012-13/2013-14/2014-15 -

Held against the revenue that the management services did not make available any technology to be taxable under the Indo-Singapore DTAA Article 12(4(b).

Ed. Note: The documentation provided by the assessee in the form of detailed email communication etc. is worth noting.

Case: DCIT v. Ceva Asia Pacific Holdings Co. Pte. Ltd. 2023 TaxPub(DT) 6207 (Del-Trib)