#International Taxation

ITAT Delhi rules a Mauritius entity holding a Category I GBL licence, FPI registration, and actual control over ECB funds satisfies the beneficial ownership test under Article 11 for interest income on ECBs lent to Indian group companies. The tribunal also denies the Section 194LD concessional withholding rate for non-convertible debentures.

ITAT Mumbai holds that management support services do not qualify as Fees for Technical Services (FTS) under the India-Singapore DTAA unless the 'make available' condition is satisfied, clarifying the taxability of cross-border service fees for multinational enterprises. The ruling reinforces the need for technical knowledge transfer to trigger FTS taxation under tax treaties.

Bombay High Court holds that only the actual income retained after refunding excess royalties under an Advance Pricing Agreement is taxable under Article 12 of the India-US DTAA. The ruling rejects the Revenue’s attempt to tax notional amounts, reinforcing the real income principle in international taxation and providing relief to multinational enterprises facing transfer pricing adjustments.

ITAT Delhi ruled that temporary access to client premises solely for installing theatre systems does not create a fixed place permanent establishment under the India-Canada DTAA, even if activities span over 120 days. This clarifies that physical presence alone, without control or disposal rights over the space, is insufficient to trigger taxation in India - a critical guidance for foreign tech and service providers operating in India under tax treaties.