The Kolkata Income Tax Appellate Tribunal recently issued a decision on whether fees paid to overseas subsidiaries for marketing support services constitute fees for technical services (FTS). The case involved Batlivala & Karani Securities Pvt. Ltd. (B&K), an India-based brokerage company providing services for institutional clients. In the year concerned, B&K paid service fees to its subsidiaries in Singapore and the UK for marketing support services for the expansion of its business overseas. The service fees paid covered the costs of the subsidiaries to provide the services plus a markup, with no tax withheld. In auditing B&K, the assessing officer...