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2016 (6) TMI 248 - AT - Income TaxEligibility to provisions of DTAA between India and Singapore - Benefits under India-Singapore Tax Treaty v/s income assessed under section 115A - Non granting of benefits under the India – Singapore Tax Treaty to the Appellant denied on the basis that it is not the beneficial owner of the income received from royalty and interest - r DTAA between India and Singapore - Held that:- It is not the case of Revenue that the amount has not been remitted to Singapore, but the benefit of Tax Treaty have been denied to the assessee since the said amount has not been remitted in the current fiscal year i.e. financial year 2009-10. Where the amount has been remitted to Singapore and has been subject to the tax, we find no merit in the orders of Assessing Officer / DRP in denying the benefit of Treaty provisions to the assessee in taxing the income at lower rates. Thus where the assessee who had entered into an agreement with its principal in UK and received the know-how, which in turn, it could sub-license and had in furtherance provided services to its sub-licensee and received sub-licensee fees from sub-licensee i.e. INPL, then such royalty income having been received by the assessee non-resident company on its own right as the beneficial owner of the same, such royalty income is to be subject to tax at concessional tax rate at 10%. Similarly, the interest income earned by the assessee was also received by it being its beneficial owner and which in turn, has been remitted though not in the instant year, is taxable at concessional rate of taxes. - Decided in favour of assessee.
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