The New Delhi Income Tax Appellate Tribunal issued a decision on 29 October 2020 concerning the application of the MFN clause in the 1997 India-Sweden tax treaty in relation to fees for technical services (FTS) and the make available test.
The case involved Bombardier Transportation Sweden AB, which received fees from Bombardier Transportation India Ltd. for intermediary services. For the year concerned, Bombardier Sweden did not include the fees in its taxable income because, based on the M…