A
All managerial services rendered abroad are automatically exempt from domestic taxation.
B
FTS is taxable only if the service provider enables the recipient to independently apply the technology or skill later.
C
The source country has absolute right to tax royalty without any restriction.
D
Technical know-how must be transferred exclusively through government-to-government channels.
Correct answer: (b) FTS is taxable only if the service provider enables the recipient to independently apply the technology or skill later.
Explanation
Option B is correct because the make-available principle dictates that FTS is taxable only if the service provider enables the recipient to independently apply the technology or skill later. Options A, C, and D do not correctly define the make-available clause.
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