Article 4 & 12 of India-USA DTAA – Even in the absence of a specific reference in Article 4(1)(b) of the DTAA, a single-member LLC is entitled to the benefits of the DTAA as it satisfies the ‘liable to tax’ requirement. The consideration for offshore repairs to aircraft engines is taxable only in the US in the absence of fulfillment of the make-available condition.

7. [2026] 184 taxmann.com 238 (Delhi - Trib.)

GE Engine Services LLC vs. ACIT

A.Y.: 2021-22

Dated: 11 March 2026

Article 4 & 12 of India-USA DTAA – Even in the absence of a specific reference in Article 4(1)(b) of the DTAA, a single-member LLC is entitled to the benefits of the DTAA as it satisfies the ‘liable to tax’ requirement. The consideration for offshore repairs to aircraft engines is taxable only in the US in the absence of fulfillment of the make-available condition.

FACTS I:

The Assessee, a single-member LLC owned by a US resident, was engaged in aircraft repair services. The Assessee obtained a tax residency certificate ("TRC") from the US tax authorities. During the year, it earned INR 37.71 Lacs and claimed a refund of INR 60.22 Lacs. The AO noted that the Assessee received a sum of INR 471.64 Crores towards repairs of aircraft (including supply of parts), which was not offered to tax.

The AO observed that a single-member LLC was regarded as a fiscally transparent entity ("FTE") in the USA and was not specifically included as a resident under Article 4(1)(b) of India-