Treaty between India and United Kingdom – Indian decision on supply of technology versus supply of machines

The Income Tax Appellate Tribunal (ITAT) issued its decision on 16 January 2013 in the case of Bajaj Holdings & Investments Ltd. v. ADIT (141 ITD 62) that payment made for the supply of inkjet printing solution was regarded as supply of technology (instead of supply of machines) when it was made exclusively available and was therefore taxable as fees for technical services (FTS) under the Income Tax Act 1961 (ITA) and under article 13(4) of the India-United Kingdom (UK) tax treaty (the Treat…