https://www.taxtmi.com/caselaws?id=118609 The ITAT held that the India-Korea DTAA non-discrimination clause did not override the tax rate fixed by domestic fiscal legislation. Article 25 was confined to nationality-based discrimination and treatment of enterprises in the same circumstances, while the general rate of tax remained governed by the Income-tax Act and Finance Act unless the treaty expressly prescribed a different rate. The Explanation to section 90(2) was treated as clarifying that a higher rate on a foreign company is not, by itself, less favourable treatment. The Tribunal also found that a domestic bank and a foreign bank's permanent establishment were not similarly situated, so the differential rate was not discriminatory. en-us Fri, 25 Nov 2005 00:00:00 +0530 Thu, 04 Apr 2024 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118609 The ITAT held that the India-Korea DTAA non-discrimination clause did not override the tax rate fixed by domestic fiscal legislation. Article 25 was confined to nationality-based discrimination and treatment of enterprises in the same circumstances, while the general rate of tax remained governed by the Income-tax Act and Finance Act unless the treaty expressly prescribed a different rate. The Explanation to section 90(2) was treated as clarifying that a higher rate on a foreign company is not, by itself, less favourable treatment. The Tribunal also found that a domestic bank and a foreign bank's permanent establishment were not similarly situated, so the differential rate was not discriminatory. Case-Laws Income Tax Fri, 25 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118609