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HP Agrawal: Scope of 'fees for technical services' clarified

Definition of the term “Fees for Technical Services” (FTS) has been a matter of controversy for quite some time because different interpretations have been given by various courts with regard to the true scope and meaning of FTS. It is very important to decide whether the services rendered fall within FTS or not. This is because in case the service rendered by the foreign party is covered under FTS, then the foreign party shall be subject to tax in India irrespective of its Permanent Establishment (PE) in India. On the other hand, if the services rendered are not FTS, then it ...