India Authority for Advance Rulings Holds that Certain Services Considered FTS under China-India Treaty even if Not Rendered in the Other State

In a recent ruling, India's Authority for Advance Rulings (AAR) has held that the following services may be considered taxable fees for technical services (FTS) under the 1994 China-India income tax treaty even if not rendered in the other Contracting State:

• Identification and evaluation of products and suppliers;
• Generation of new products and ideas;
• Market research;
• Resolution of pricing issues;
• Safety/endurance tests;
• Review of quality systems; and
• Interaction with vendors

The positio…