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The Tax Publishers Marketing services from Singapore whether FTS under Indo-Singapore DTAA Article 12 - Hotel and Hospitality Industry *Facts:* Assessee a Singapore resident was owner of Trademark brand "Shangri-La" for which it was receiving royalty income from India arising out of licensing of the brand/trademark. Besides this licensing agreement there were two more agreements by assessee with various hotels in India one to provide marketing consultancy, centralised booking and reward points etc. and the other to provide hotel Management services for a fee. They offered licensing of brand/trademark and hotel management services as Fee for technical services (FTS) from India, while AO held that even the marketing consultancy services etc will fall into the scope of Indo-Singapore DTAA Article 12 as they were inextricably connected to the brand/trademark licensing agreement. On higher appeal - Held in favour of the assessee that hotel marketing consultancy fee is not FTS and they are not taxable in India as per Indo-Singapore DTAA Article 12. *Applied:* DIT v. Sheraton International Inc. (2009) 178 Taxman 84 (Del.) : 2009 TaxPub(DT) 1391 (Del-HC) Starwood Hotels Resorts Worldwide Inc v. ACIT & Ors. in ITA Nos. 2254 & 2255/Del./2022, No. 2011/Del/2019, dated 29-4-2022 affirmed by Delhi High Court Order, dated 4-11-2022 in ITA No. 434/Del/2022 Both above under analogous articles of Indo-US DTAA *Case:* Shangri-La International Hotel Management Pte. Ltd. v. ACIT 2023 TaxPub(DT) 1503 (Del-Trib)

The Tax Publishers

Marketing services from Singapore whether FTS under Indo-Singapore DTAA Article 12 - Hotel and Hospitality Industry

Facts:

Assessee a Singapore resident was owner of Trademark brand "Shangri-La" for which it was receiving royalty income from India arising out of licensing of the brand/trademark. Besides this licensing agreement there were two more agreements by assessee with various hotels in India one to provide marketing consultancy, centralised booking and reward points etc. and the other to provide hotel Management services for a fee. They offered licensing of brand/trademark and hotel management services as Fee for technical services (FTS) from India, while AO held that even the marketing consultancy services etc will fall into the scope of Indo-Singapore DTAA Article 12 as they were inextricably connected to the brand/trademark licensing agreement. On higher appeal -

Held in favour of the assessee that hotel marketing consultancy fee is not FTS and they are not taxable in India as per Indo-Singapore DTAA Article 12.

Applied:

DIT v. Sheraton International Inc. (2009) 178 Taxman 84 (Del.) : 2009 TaxPub(DT) 1391 (Del-HC)

Starwood Hotels Resorts Worldwide Inc v. ACIT & Ors. in ITA Nos. 2254 & 2255/Del./2022, No. 2011/Del/2019, dated 29-4-2022 affirmed by Delhi High Court Order, dated 4-11-2022 in ITA No. 434/Del/2022

Both above under analogous articles of Indo-US DTAA

Case: Shangri-La International Hotel Management Pte. Ltd. v. ACIT 2023 TaxPub(DT) 1503 (Del-Trib)