The Tax Publishers2020 TaxPub(DT) 1128 (Kol-Trib)

INCOME TAX ACT, 1961

Section 90

Since provisions of Indo-UK DTAA were more beneficial, AO ought to have taxed FTS received by non-resident assessee at concessional rate of 15% of gross receipts as per article 13(2) of the DTAA as against higher rate of 20% of gross receipts provided under section 115A.

Double taxation relief - Agreement between India and UK - Fee for technical services - Taxability as per section 115A or as per beneficial provisions of DTAA

Assessee based at UK received fee for technical services from Indian entity. AO taxed the same at higher rate of 20% of gross receipts provided under section 115A. Held: Since provisions of Indo-UK DTAA were more beneficial, AO ought to have taxed FTS at concessional rate of 15% of gross receipts as per article 13(2) of the DTAA as against higher rate of 20% of gross receipts provided under section 115A.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10 to 2011-12


INCOME TAX ACT, 1961

Section 234B Section 234C

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