India-UK DTAA | Consideration For Availing Services That Require Technical Expertise Not FTS Unless Recipient Absorbs Technology: Delhi HC

The Delhi High Court has reiterated that consideration for availing services requiring technical expertise does not qualify as "Fees for Technical Services" (FTS) under the India-UK DTAA unless the recipient "absorbs the technology." The court emphasized that for services to fall under the FTS definition in the Double Taxation Avoidance Agreement, there must be a "make available" clause, meaning the service recipient must gain the technical knowledge or skill to apply the technology independently. Mere provision of technically complex services, without such transfer of knowledge, does not attract FTS taxation.