Double taxation - clarification

[Rajagopal Ramachandran]

I have come across some Tax Assessing Officers who is requesting assesse to produce case laws on Double Taxation Treaty Signed between UAE and India. Article 11 of the Income Tax Act clearly mention the Tax on Interest paid to a NRI living in UAE for more than 180 days and the rate of tax is fixed at 12.5% on interest paid to NRO Savings and or FD account. Even circulars been issued to Bank to deduct TDS at 12.5% for such case. Can anyone help me in giving some case on laws in this case on DTAA to produce to the officer. Thanks Ramachandran

AI Summary

Clarification on Double Taxation for NRIs in UAE: Article 11 of Income Tax Act Sets 12.5% Rate A participant sought clarification on double taxation issues concerning the tax rate on interest paid to a Non-Resident Indian (NRI) living in the UAE, as per Article 11 of the Income Tax Act, which specifies a 12.5% tax rate. Despite clear provisions, a Tax Assessing Officer requested case laws to support this. Another participant suggested that case laws might not be necessary if the treaty and law are clear, but recommended finding advance rulings. A ruling by the Authority for Advance Rulings (AAR) was suggested as a potential solution to address the officer's request.