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2013 (12) TMI 1105 - AT - Income TaxEducation cess and surcharge – Whether the rate of TAX as per DTAA is inclusive of Education Cess and Surcharge – Held that:- The non-resident assessee has earned interest from partnership firm in India – As per article 11(2) if recipient is beneficial owner of interest, tax so charged shall not exceed 5% of gross interest if the interest is paid by the bank and in other cases 12.5% of the gross interest - The assessee is the beneficial owner of interest and tax charged cannot exceed 12.5% of gross interest – As per DTAA between India and UAE - Tax has been defined in Article-2(2)(b) as per which income tax included surcharge - Therefore, tax referred to in Article 11(2) @ 12.5% also includes surcharge – Following DIC Asia Pacific Pte Ltd [2012 (6) TMI 686 - ITAT, KOLKATA] – Decided in favour of assessee.
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