DTAA Relief for Partners

The Income Tax Appellate Tribunal, Delhi, held that the taxability of income earned by a fiscally transparent UK partnership must be determined with reference to the tax residence of each partner. 

It ruled that non-UK resident partners are entitled to claim the benefits of the applicable Double Taxation Avoidance Agreement (DTAA) between India and their respective countries of residence, and that legal services rendered by foreign law firms do not constitute Fees for Technical Services (FTS) under Section 9(1)(vii) of the Income-tax Act.