News
Myntra Inc. v. ACIT: ITAT Holds No ‘Make available’ satisfied wrt Manpower Support Services, thus non-taxable Under DTAA
04 May 2026
- DMD Advocates
- Matter Reporting
Myntra Inc., a US-based company, provided ‘manpower support services’ to Flipkart Internet Pvt. Ltd., and claimed the receipts from such services as non-taxable under the India-US DTAA. However, the AO treated the receipts as ‘fees for technical services’ and made an addition to the income of the assessee company.
The ITAT Delhi held that the receipts received from Flipkart India were not taxable as FTS under 12(4) of the India-US DTAA, since the ‘manpower support services’ did not satisfy the “make available” condition under Article 12(4)(b) of the DTAA. The Tribunal observed that there was no transfer of any know-how, technical skill, technical knowledge, or process that could help them to independently deploy such services in the future. It was further held that the mere provision of services does not satisfy the “make available” condition or amount to the impartation of lasting expertise.
Accordingly, the addition made by the AO and the directions issued by the DRP were held to be unsustainable and were therefore ordered to be deleted. The ITAT consequently deleted the addition of approximately INR forty-one crores.
The Appellant, Myntra Inc., was represented by Senior Advocate Sachit Jolly along with DMD Advocates led by Associate Partner Sherry Goyal.
