TMI Blog2012 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - A.A.R. No.967 of 2010 - - - Dated:- 28-2-2012 - Justice Mr. P.K.Balasubramanyan, Mr. V.K. Shridhar, JJ. Present for the applicant Mr. Rajan Vora, CA, SR Batliboi Co Mr. Rahul Kashikar, CA, SR Batliboi Co Mr. Siddharth Kaul, SR Batliboi Co Mr. Arijit Charkravarty, Advocate RULING The applicant is a company incorporated under the Indian Companies Act. It is a tax resident of India. It is engaged in the business of providing telecommunication services across different circles in India. During the course of its busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SEK. 4. The applicant approached this Authority with the present application seeking an Advance Ruling on a plea that all the agreements relating to this transaction were negotiated and concluded outside India. It takes the stand, that the loan having been guaranteed by EKN, the interest paid under the transaction is not liable to charge to tax in India under the Income-tax Act in view of Article 11.3 of the Double Taxation Avoidance Convention between India and Sweden. While allowing the application under section 245R(2) of the Act, this Authority framed the following questions for the ruling: 1. Whether payment of interest to AB Svensk ExportKredit ( SEK )[ through the Facility Agent i.e. NORDEA Bank AB( PUBL ) in respect of loan drawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here. We may notice that the same representative argued both the applications before us. That is all the mere reason for thinking that it is only necessary to adopt reasons given by us in our Ruling in AAR No.953 of 2010 in this behalf. We adopt the reasoning therein. 7. Thus, on the basis of paragraph 3 of Article 11 of the Tax Convention between India and Sweden, the applicant cannot claim that the interest paid or payable cannot be taxed in India. 8. Alternatively, it is contended on behalf of the applicant that in the Protocl to India-Sweden DTAC entered into on 24.6.1997, there is a Most Favoured Nation Clause covering interest dealt with in Article 11 of the Tax Convention and going by it and going by the Convention entered into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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