Case Law Analysis
|Income Tax Appellate Tribunal
Software Subscription Fees Not FTS Under India-US DTAA; Professional Services Qualify as FTS: ITAT Delhi
The ITAT Delhi has ruled that payments for software subscriptions do not constitute Fees for Technical Services under Article 12 of the India-US DTAA, distinguishing them from payments for professional services that do. This clarifies the tax treatment for global SaaS providers operating in India and reinforces the Engineering Analysis Centre precedent, offering critical relief to tech companies structured around subscription models.