Indian High Court Rules that Commission Payments to a Non-Resident Not Considered Fees for Technical Services

The High Court of Delhi has recently ruled on whether or not commission payments paid by an Indian company to a company established in Liechtenstein that procured export orders should be considered fees for technical services (FTS) subject to withholding tax.

A claim by the Indian tax authorities that the payments were FTS subject to withholding tax was initially appealed by the taxpayer to the Income Tax Appellate Tribunal, which decided in favor of the taxpayer. The tax authorities then a…