The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 1 March 2007 in the case of Bharat Petroleum Corporation Ltd. vs. Jt. DIT (2007 14 SOT 307) holding that payment to a foreign company for conducting market study, would not be taxable in India as Fees for Technical Service (FTS) under the India-Singapore tax treaty (the Tax Treaty) and hence, not subject to withholding tax in India. (a) Facts. The Taxpayer (i.e. Bharat Petroleum Corporation Ltd.) was a public sector company under the Ministry of Petroleum and Natural Gas, engaged in the business of refining...