https://www.taxtmi.com/caselaws?id=182155 Interest effectively connected with a non-resident's permanent establishment in India falls outside the article 12(2) India-UK treaty cap, because article 12(6) displaces that limitation and brings the receipt within article 7 business profits. On the stated facts, refund interest arose from a debt-claim effectively connected with the Indian permanent establishment, so taxation as business profits was permissible. Separately, refund interest from the tax department does not satisfy section 44BB's nexus requirement, because it is not a receipt on account of oil-exploration services, facilities, or plant and machinery used for that activity. Accordingly, the treaty-rate argument and the section 44BB inclusion claim both failed. en-us Tue, 19 May 2015 00:00:00 +0530 Wed, 04 May 2016 09:12:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182155 Interest effectively connected with a non-resident's permanent establishment in India falls outside the article 12(2) India-UK treaty cap, because article 12(6) displaces that limitation and brings the receipt within article 7 business profits. On the stated facts, refund interest arose from a debt-claim effectively connected with the Indian permanent establishment, so taxation as business profits was permissible. Separately, refund interest from the tax department does not satisfy section 44BB's nexus requirement, because it is not a receipt on account of oil-exploration services, facilities, or plant and machinery used for that activity. Accordingly, the treaty-rate argument and the section 44BB inclusion claim both failed. Case-Laws Income Tax Tue, 19 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182155