|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.