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2023 (1) TMI 1274 - HC - Income TaxSuperseding of DTAA over Domestic law - scope for deduction of tax @ 20% u/s 206AA - TDS provisions to be read along with DTAA for computing the tax liability - whether section 206AA of the applicable even when the non resident payee does not have PAN and also in view of CBDT Circular No.5 of 2010 and Notification dated 24-6-2016? - HELD THAT:- The questions of law raised in this appeal, are covered by the decision of M/S. WIPRO LTD.[2023 (1) TMI 173 - KARNATAKA HIGH COURT] as held Section 206AA cannot be understood to override the charging Sections 4 and 5 of the Act. Provision in Section 206-AA has to be read down to mean that where the deductee i.e., the overseas resident business concern conducts its operation from a territory, whose Government has entered into a Double Taxation Avoidance Agreement with India, the rate of taxation would be as dictated by the provisions of the treaty. When it was pointed out to Revenue he does not dispute the same in his usual fairness.In view of above, this appeal is dismissed.
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