TMI Blog2022 (2) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... he next date of hearing. List the matter before the Joint Registrar (Judicial) for completion of pleadings on 11th May, 2022. Withholding of tax - withholding at the rate of 10% in accordance with section 115A of the Act read with the DTAA - HELD THAT:- As perused the decision of this Court in Epcos Electronic [ 2019 (7) TMI 708 - DELHI HIGH COURT] as well as the FAQ issued by the CBDT, wherein it has been held that no additional surcharge and cess is to be applied over the 10% rate as prescribed under the DTA - we direct that purely as an interim measure, the Petitioner would be entitled to receive its payment from GCI subject to a deduction of 8% to be paid to the Respondent No.2 progressively. This interim arrangement is being made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if any, to be filed before the next date of hearing. 5. List the matter before the Joint Registrar (Judicial) for completion of pleadings on 11th May, 2022. C.M.No.603/2022 6. This matter had originally been listed for hearing on 06th January, 2022. In support of the interim application, learned counsel for the Petitioner had submitted that given that the Petitioner has already subjected itself to EL of 2% on the payments under consideration, the impugned order creates a double jeopardy since in the impugned order, GCI i.e. the payer has been asked to withhold 10% tax as per the provision of section 115A of the Act read with the DTAA. Hence, he submitted that without prejudice to the rights and contentions, the Petitioner be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Epcos Electronic Components S.A. v. UOI, (2020) 316 CTR 126 and therefore, the 10% withholding rate is the maximum that can be imposed in terms of the DTAA. He also submits that this position has also been clarified by the CBDT in the Taxpayer Information Series 44, under Chapter 8 [Frequently Asked Questions on (FAQs) Royalty and FTS and Related matters], issued by the Directorate of Income Tax dated 19th July, 2013, copy whereof has also been placed on record. Thus, he submits that the maximum tax liability on the proposed payments under Google Cloud Services Reseller Agreement as per the application filed by GCI for the year consideration could only be 110.64 crores. He points out that in the letter dated 10th January, 2022 issued b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to receive its payment from GCI subject to a deduction of 8% to be paid to the Respondent No.2 progressively. This interim arrangement is being made under the orders of this court. The deposit of 8% should not be treated as any non-compliance of the impugned order. 10. With this direction, the present application stands disposed of. C.M.No.5933/2022 11. By way of this application, the Petitioner has filed the amended memo of parties, wherein the payer i.e. Google Cloud India Pvt. Ltd. has been impleaded as proforma respondent Respondent No. 3. 12. The application is allowed and the amended memo, filed along with this application, is directed to be taken on record. 13. Accordingly, the application stands disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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