AMC Does Not Tantamount To Make Available Of Technical Knowledge, Not Taxable As FTS

HCL Comnet Ltd. ("the Assessee"), a company incorporated in India is engaged in the business of designing, delivering, installation and commissioning of networking solution and providing professional services for management and maintenance of networking solution. During the relevant assessment year, the Assessee made payments under annual maintenance contracts (AMC) to various foreign companies without deducting taxes at source. The payment for AMC contract comprised payment for warranty charges and extended warranty charges, which were in the nature of repair/ replacement of equipment. As per the terms of the contract, equipment was sent outside India for any repair/ replacement and was re-imported in India after the repair work was done.