Treaty between India and Australia – Indian decision that IT support services are not making available technical services

The Indian Income Tax Appellate Tribunal (ITAT) issued its decision on 23 January 2013 in the case of Sandvik Australia Pty. Ltd. v. DDIT (ITA No. 93/PN/2011) that the provision of information technology (IT) support services are not regarded as making available technical services/knowledge.

(a) Facts. The Taxpayer (i.e. Sandvik Australia Pty. Ltd.), a company incorporated in Australia, acts as a global IT support centre for the Asia-Pacific region and is responsible for providing the ne…