Case Details: Veritas Storage (Singapore) Ptd. Ltd. vs. Deputy Commissioner of Income-tax - [2026] 182 taxmann.com 149 (Delhi - Trib.)
Judiciary and Counsel Details
- Vikas Awasthy, Judicial Member
- Krinwant Sahay, Accountant Member
- Tarun Gulati, Sr. Adv., Nikhil Gupta & Prince Nagpal, Advs. for the Appellant.
- M.S. Nethrapal, CIT-DR for the Respondent.
Facts of the Case
The assessee company, incorporated under the laws of Singapore, was engaged in the sale of software. It provided maintenance support, other services, education and training services in connection with the software’s utilisation. The assessee received consideration for the same. The Assessing Officer (AO) treated the income earned by the assessee from maintenance support and education and training services as fees for technical services (FTS).
On appeal, the CIT(A) deleted the additions made by the AO. Aggrieved by the order, an appeal was filed to the Delhi Tribunal.
The Tribunal held that maintenance support and other services, as well as education and training services, are intricately and inextricably associated with the Software sold and are provided in connection with the software’s utilisation as per Article 5(a) of the Indo-Singapore DTAA.
Further, the revenue itself has accepted that the sale of software is not taxable as Royalty. When the income from the sale of the software is not taxable, income from the sale of related and inextricably linked services cannot be held as FTS.
ITAT Held
Maintenance support and other services; Education and training services are not taxable as FTS. The said transactions do not satisfy the ‘make available’ clause as per Article 12(4)(b) of the India-Singapore DTAA. Burden is on the revenue to demonstrate that the make available condition is satisfied. Neither the Assessing Officer nor the revenue could bring any evidence on record to substantiate that the ‘make available’ condition is satisfied in the case of the assessee.
Accordingly, the Assessing Officer was directed to delete the said addition.
List of Cases Reviewed
- TSYS Card Tech Ltd. v. Dy. CIT, International Taxation [2023] 149 taxmann.com 195 (Delhi-Trib.) (para 9)
- Veritas Storage [Singapore] Pte Ltd v. Dy. CIT, International Taxation [IT Appeal No. 1913 (Delhi) of 2023, dated 22-8-2025] (para 10) Followed.
List of Cases Referred to
- TSYS Card Tech Ltd. v. Dy. CIT, International Taxation [2023] 149 taxmann.com 195 (Delhi-Trib.) (para 6)
- Veritas Storage [Singapore] Pte Ltd v. Dy. CIT, International Taxation [IT Appeal No. 1913 (Delhi) of 2023, dated 22-8-2025] (para 10).
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