Under DTAA india and japan

[MITSUI PRIME ADVANCED]

Dear Sir,

We have involved in foreign payment under Loan Guarantee Fee Loan is provided by JABIC( Japans Association of Borrowing Corporation) We have paid installment to Mitsui Chemical Inc. , Japan . We have registered under Company act 1956 with name of Mitsui Prime Advanced Composites India Pvt India . MPAC, India paid Installment against loan to MCI, Japan , in this above scenario attract Double Taxation Avoidance Agreement between India and Japan TDS is deductible under DTAA on loan guarantee Services ?

under Artical 12 or artical 22 

TDS rate 10% 

or in this case locan sentancy not in teratry than applay 40% TAX in the case of fourign Compnay?

 please provide your valuable advice.

Regards

Arjun Sachdeva

AI Summary

Company Seeks Clarity on TDS Rate for Loan Guarantee Fee under India-Japan DTAA, Section 195 Examined for Applicability A company involved in a loan guarantee fee payment to Mitsui Chemical Inc., Japan, seeks advice on whether this transaction is subject to the Double Taxation Avoidance Agreement (DTAA) between India and Japan. The query questions if Tax Deducted at Source (TDS) should be applied at a 10% rate under Article 12 or 22, or at a 40% rate for foreign companies. The response suggests that TDS may be applicable under Section 195, considering relevant provisions and the DTAA, but recommends a detailed examination of the facts and laws involved.