https://www.taxtmi.com/caselaws?id=182155 Interest on an income-tax refund effectively connected with a non-resident's permanent establishment in India falls outside the India-UK treaty interest-rate limitation. Article 12(6) displaces Article 12(2) where the debt-claim is effectively connected with the permanent establishment, so the interest is taxable as business profits under Article 7. Such refund interest also cannot enter the presumptive tax computation for oil-exploration activities because it is not consideration for qualifying services or facilities, or for plant and machinery used in those activities. The required statutory nexus is absent. 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 on an income-tax refund effectively connected with a non-resident's permanent establishment in India falls outside the India-UK treaty interest-rate limitation. Article 12(6) displaces Article 12(2) where the debt-claim is effectively connected with the permanent establishment, so the interest is taxable as business profits under Article 7. Such refund interest also cannot enter the presumptive tax computation for oil-exploration activities because it is not consideration for qualifying services or facilities, or for plant and machinery used in those activities. The required statutory nexus is absent. Case-Laws Income Tax Tue, 19 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182155