<b>Brief case:</b> Danish firm not liable to pay tax

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The Supreme Court has ruled a global telecommunications facility provided by a Danish shipping firm to its agents in this country was an integral part of the business and cannot be taxed in India as fees for technical service under the Indo-Danish Double Taxation Avoidance Agreement. The court thus upheld the view of the Bombay High Court and dismissed the appeal of the revenue authorities in its judgment, Director of Income Tax vs AP Moller Maersk. The tax department had assessed 20 per cent on the foreign firm. The high court had held utilisation of the Maersk Net Communication System