The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 2 February 2007 (published recently) in the case of ITO v. De Beers India Minerals Pvt. Ltd. (2007-TIOL-423-ITAT-BANG) holding that the payment made to a Netherlands based entity for collecting data and preparing reports, would not be taxable in India as fees for technical services (FTS) under India-Netherlands tax treaty (the Tax Treaty). (a) Facts. The Taxpayer (i.e. De Beers India Minerals Pvt. Ltd.) was an Indian company engaged in the business of prospecting and mining for diamonds and other minerals under licence from the Indian...