Standard automated services provided without human intervention are not Fees for Technical Services

The Delhi Bench of India’s Income-tax Appellate Tribunal (ITAT) has held that amounts paid for standard connectivity and networking services provided without any human intervention, e.g., payments in respect of intranet, internet, and broadband charges, are not fees for technical services (FTS) and consequently, are not subject to the deduction of tax at source (TDS). The ITAT announced its decision on 13 October 2021.

Source Deloitte



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