Topic

International Tax

2 articlesLatest August 2026
Headquarters support fees & IT recharges fail ‘make-available’ test, not royalty under Article 12 India-Netherlands DTAA | Tax Tribunal : ITAT
|Income Tax Appellate Tribunal

Headquarters support fees & IT recharges fail ‘make-available’ test, not royalty under Article 12 India-Netherlands DTAA | Tax Tribunal : ITAT

The ITAT held that Arcadis N.V.’s headquarters support fees and IT recharge amounts fail the ‘make-available’ test in Article 12 of the India-Netherlands DTAA, so they are not taxable as royalty. The ruling narrows the treaty’s royalty provision to genuine technical knowledge transfers, affecting multinationals receiving similar support fees from Indian subsidiaries.

DTAA Article 12 | Credit Rating Fees Not Royalty or FTS Without Transfer of Technical Know-How : ITAT Delhi
Case Law Analysis
|Income Tax Appellate Tribunal

DTAA Article 12 | Credit Rating Fees Not Royalty or FTS Without Transfer of Technical Know-How : ITAT Delhi

The ITAT Delhi has ruled that fees paid for credit ratings and surveillance services do not qualify as royalty or fees for technical services under the India-Singapore DTAA unless there is a transfer of technical know-how to the client. This sets a crucial precedent for multinational rating agencies and foreign service providers, clarifying the taxability of intangible services in cross-border transactions.

Continue exploring