Payment made to non-residents marketing partners for sales services is FTS

Last updated: 10 November 2022

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The Income Tax Appellate Tribunal (ITAT) in Chennai has ruled that payments made to non-resident marketing partners for providing pre- and post-sale services related to software solutions are considered Fees for Technical Services (FTS). The tribunal upheld the Assessing Officer's decision to disallow the payment due to the failure to deduct Tax Deducted at Source (TDS) as required by law. The ruling emphasised that the training provided to marketing partners for technical services meant the payments fell under the FTS definition.

Court :
ITAT Chennai

Brief :
Payment made by the assessee to non-resident marketing partners for providing pre- and post-sale services related to software solutions is in the nature of Fees for Technical Services.

Citation :
ITAT Chennai Bench-ITA No.2791/Chny/2019

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FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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