The Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 19 June 2012 in the case of Andaman Sea Food Private Limited (ITA No. 1412/Kol/2011) where it held that consultation charges are not taxable as business profits in absence of a permanent establishment (PE) under article 5 of the India - Singapore Income Tax Treaty (1994) (the Treaty) nor as technical services in absence of "make available" technical knowledge under article 12 of the Treaty. The ITAT further held that the residuary article of income under article 23 of the Treaty will not apply when consultation charges are regarded as an item of income which...