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2012 (3) TMI 46 - AUTHORITY FOR ADVANCE RULINGSDTAA between India and Sweden – applicant availed loan facility from AB SVENSK Export Kredit (SEK), a company incorporated in Sweden – facility being guaranteed by the Swedish Export Credits Guarantee Board (EKN) – whether payment of interest (through the Facility Agent NORDEA Bank AB(‘PUBL’)) is exempt in India – withholding of tax - Held that:- Payment of interest to SEK through NORDEA Bank AB is not taxable in India under Article 11.3 of the India-Sweden Double Taxation Avoidance Convention in view of and only in view of the Most Favoured Nation Clause in the India-Sweden Protocol which has to be taken as part of the Convention. Since it is claimed that SEK has no Permanent Establishment in India, there will be no obligation on the applicant to withhold taxes u/s 195 of the Income-tax Act, on the interest payable on the transaction.
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