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August 2023

Article 12 of India — USA DTAA — Provision of architectural services for construction of Statue of Unity is not taxable in India as it does not satisfy make available condition in DTAA.

By Geeta Jani | Dhishat B. Mehta | Bhaumik Goda
Chartered Accountants
Reading Time 2 mins
3. Michael Graves Design Group Inc. vs. DCIT [ITA No: 7683/Del/2017 & 6007/Del/2018] A.Ys.: 2014-15 & 2015-16          
Date of order: 18th July, 2023 Article 12 of India — USA DTAA — Provision of architectural services for construction of Statue of Unity is not taxable in India as it does not satisfy make available condition in DTAA.   FACTS
Assessee provided architectural design, drawing and master plan for the construction of Statue of Unity. AO held the assessee rendered technical and architectural design services which made available the technology, skill, experience, etc., and thus fell within the ambit of FIS under Article 12(4)(b) of the India-USA DTAA. DRP upheld the AO order. Being aggrieved, the assessee appealed to ITAT. HELD
  • Assessee rendered project-specific services involving creation of conceptual, aesthetic design and description of scope that would give the EPC contractor guidance for the design and execution of the project.
  • Design provided by the assessee was for the appearance of the project, and it was the responsibility of the EPC contractor to develop final design.
  • Assessee did not develop a technical design or transferred a technical plan. It o
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