A decision of the Indian Supreme Court was recently published on whether payments for the use of a central computer system qualifies as taxable fees for technical services (FTS) under the 1989 tax treaty with Denmark. The case involved Denmark-based A.P. Moeller-Maersk A/S (Maersk) and the use of its communication system by Indian agents.
As part of its Indian business, Maersk has four Indian subsidiaries (agents) that book cargo and act as clearing agents. In order to assist its agents glo…