Treaty between India and Netherlands – Indian advance ruling: payment to a non-resident for consultancy services is not fees for technical service

The Indian Authority for Advance Rulings (AAR) delivered a ruling dated 6 December 2013 in the case of Endemol India Private Limited (AAR No. 1075 of 2011) that payments made to a non-resident for procuring certain consultancy services would not constitute fees for technical services (FTS) under article 12 of the India - Netherlands Income and Capital Tax Treaty (1988) (as amended through 2012) (the Treaty).
(a) Facts. The Applicant (i.e. Endemol India Private Limited), a tax resident of India, …