S.9(1) (vii): Income deemed to accrue or arise in India-Fees for technical services-DTAA-India-Singapore-
Testing of dog food and similar products--No technical knowledgeis made available, payments received by
assessee not fees for technical services. (Art.12(4).
The assessee-company, incorporated under the laws of Singapore, is engaged in the business of rendering services
relating to testing solutions, sample analyses and analytical testing of food and feed samples. During the year, the
assessee provided services to Indian companies for testing of dog food and similar products. After testing, the test
reports were sent to the Indian companies and the assessee received service fee therefor. The assessee claimed that these receipts were its business income. The Assessing Officer held that the assessee had made available technical knowledge, skill or know-how to the Indian customer and the payments made to it were in the nature of fees for technical services as defined under article 12(4) of the Double Taxation Avoidance Agreement between India and Singapore. The Commissioner (Appeals) confirmed this. On appeal the Tribunal held that, the assessee provided testing services and issued test reports. These reports could not be said to make available any technical knowledge, experience, skill, know how or processes which enabled the Indian company to acquire the services to apply the technology contained therein. Therefore, these receipts would not amount to fees for technical services under the "make available" clause in article 12(4) of the Double Taxation Avoidance Agreement between India and Singapore. (A.Y. 2005-2006)
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