Tuesday, 4 September 2012

Installation & commissioning services are an integral part of supply and not assessable as "fees for technical services" despite seperate contract

 DCIT vs. Dodsal Pvt. Ltd (ITAT Mumbai)

 Though there was a seperate contract for supply and a seperate one for installation and commissioning services, the said services had to be treated as "ancillary and subsidiary as well as inextricable and essentially linked to the sale/supply of the equipment" and, therefore, was not chargeable to tax in India in the hands of the Canadian company as "fees for included services". Consequently, the s. 40(a)(i) disallowance was not sustainable

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