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2012 (10) TMI 129 - ITAT MUMBAIIndo-UK DTAA - Taxation on marketing contributions and value added service - at 15% on gross basis as per Article 13 of DTAA OR 10% u/s 115A(1)- Held that:- Considering a copy of the order u/s 154 for assessment year 2006-2007 the receipts from marketing contributions and value added service has been held to be taxable at the rate of 10% along with surcharge and education cess. It is observed that this order u/s 154 was passed on 24.03.2009 and the Tribunal order for assessment year 2007-2008 was passed on 18.11.2011 i.e. after the passing of the rectification order u/s 154. Thus the ends of justice will meet adequately if the impugned order on this issue is set aside and the matter is restored to the file of A.O. for deciding it in consonance with the directions contained in Tribunal order. Royalty income - applying tax rate of 15% or 10% as per section 115A - Held that:- The Tribunal has decided this issue in assessee's favour for assessment year 2007-2008 which has been concluded that the concessional rate of 10% should be applied - in favour of assessee. Charging of interest u/s 234B - Held that:- As decided in DIT (INTERNATIONAL TAXATION) Versus NGC NETWORK ASIA LLC [2009 (1) TMI 174 - BOMBAY HIGH COURT]interest u/s 234B cannot be charged where tax is deductible at source in relation to royalty and FTS. Thus direct AO to compute interest u/s 234B to follow as above stated.
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