TaxTMI 
TaxTMI 
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
Double taxation - clarification
22 Oct 2009 
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Tax on interest: treaty rate applies to NRIs resident in partner state; rely on AAR guidance to claim reduced TDS.
Article 11 treaty relief for interest payments is asserted as the basis for a reduced TDS rate on interest paid to NRIs resident in the UAE; despite documentary proof of residence, an assessing officer has requested supporting case law or advance rulings before accepting treaty treatment. A forum respondent points to an Advance Ruling on the India-UAE DTAA addressing Article 11 and supplies a link as potential support for claiming the treaty rate rather than regular taxation. (AI Summary)
Article 11 treaty relief for interest payments is asserted as the basis for a reduced TDS rate on interest paid to NRIs resident in the UAE; despite documentary proof of residence, an assessing officer has requested supporting case law or advance rulings before accepting treaty treatment. A forum respondent points to an Advance Ruling on the India-UAE DTAA addressing Article 11 and supplies a link as potential support for claiming the treaty rate rather than regular taxation. (AI Summary)