"Income deemed to accrue or arise in India to a non-resident by way of interest, royalty and fees for technical services is to be taxed irrespective of territorial nexus". Examine the correctness or otherwise of the stat

This statement is correct. As per Explanation to section 9 of the Income tax Act, 1961, income by way of interest, royalty or fees for technical services which is deemed to accrue or arise in India by virtue of clauses (v), (vi) and (vii) of section 9(1) of the Income tax Act, 1961, shall be included in the total income of the non-resident, whether or not: Non-resident has a residence or place of business or business connection in India; Non-resident has rendered services in India. In effect, the income by way of fees for technical services, interest or royalty from services utilized in India would be deemed to accrue or arise in India in case of a non-resident and will be included in his total income, whether or not such services were rendered in India and irrespective of whether the non-resident has a residence or place of business or business connection in India.