Case Law Analysis
|Income Tax Appellate Tribunal
India-USA DTAA | Offshore Engine Repair Does Not Constitute 'Fees for Technical Services' Without 'Make Available' Element : ITAT Delhi
The ITAT Delhi has ruled that offshore repair services for aircraft engines, performed outside India, do not trigger taxation as Fees for Technical Services under the India-USA tax treaty because the essential 'make available' requirement - transfer of technical knowledge or expertise to the recipient - remains unfulfilled. This clarifies the boundary between mere physical repair work and taxable technical service, impacting multinational aerospace and aviation service providers operating from offshore locations.