assessee before us, stated that pursuant to the Agreement, the assessee has provided Management. General Support and Administrative Services for an agreed management fee which is calculated at 110 percent of all direct and indirect costs incurred by the assessee for rendering of services i.e. INR 30,18,10,059/-for the year under review. As evident from extract above, Article 7(I) of the India-Singapore DTAA provides for the attribution of profits to a Permanent Establishment and not receipts. The learned Counsel for the assessee stated that the AO erred in treating the gross receipts of INR 30,18,10,059/- as the profit attributable to the Service PE and ought to have determined the profit clement in the said receipt at 10 percent of the costs or 10 / 110 of the gross receipts of 30,18,10,059/- i.e. INR 2,74,37,278. The assessee filed the Agreement wherein it is specified in Pans 4 and 5 that DDIL shall pay the assessee management fee calculated based on 110% of all direct and indirect costs incurred by the assessee in rendering of the management services" and that all direct and indirect costs incurred for the provision of the services shall be allocated to the Company 'DDIL, based on a formula. We are of the view that the above contention of the assessee needs verification of facts by the AO. Hence, we direct the AO to decide the issue by considering the following: i. The service fee is taxable as fee for technical services in both the years i.e. AY 2012-13 and 2013-14. ii. The management fee for AY 2012-13, being in the nature of business profit under the India-Singapore DTAA is not taxable in India as the assessee does not have a service PE because the condition of article 5(6)(b) of the DTAA is not satisfied for the reason that the no. of days of stay of employees is 2 days only. iii. As regards to AY 20113-14, the management fee earned by assessee, the profit attribute to management service PE as per article 7(1) of India Singapore DTAA can be considered. direct the AO accordingly.