STERIA INDIA LTD Vs CIT: DELHI HIGH COURT (Dated: July 28, 2016)
Income tax - Sections 90, 195, 201(1), 201(1A) & 245Q - India-France DTAA - Article 13.
Keywords - beneficial provision - FTS - fees for technical services - management servies - make available clause - permanent establishment - PE - physical presence & separate notification.
Whether a separate Protocol signed between India and France which forms an integral part of the DTAA, needs to be separately notified for the purpose of beneficial provisions in some other Convention between India and another OECD country, once the DTAA has itself been notified by the Central Government under Section 90 - NO: HC
Whether where the expression 'managerial services' is itself outside the ambit of 'FTS' occurring in Article 13(4) of the Indo-UK DTAA, then the question of the assessee having to deduct tax at source from the payment made by it for such managerial services, would not arise - YES: HC
Whether the benefit of the restricted scope of 'FTS' as provided for in a DTAA entered into by India with another OECD member country shall also apply under the India-France DTAA with effect from the date on which the DTAA or such other DTAA enters into force - YES: HC
Assessee's petition allowed