Treaty between India and US – Indian decision on taxability of payments made for standard training services as fees for technical services

The Income Tax Appellate Tribunal (ITAT) issued its decision on 28 August 2013 in the case of United Helicharters Pvt. Ltd. v. ACIT (ITA No. 5136 - 5137/MUM./2011) that, in adherence to rules of the regulator, standard training given to pilots/engineers does not amount to "making available" technical skills, knowledge, etc. and therefore, is not taxable as fees for included service under the India - United StatesIncome Tax Treaty (1989) (the Treaty).

(a) Facts. The Taxpayer (i.e. United Helicha…