https://www.taxtmi.com/caselaws?id=396031 Corporate guarantee commission paid to a non-resident associated enterprise is not interest under the India-Netherlands DTAA because a contingent guarantee does not involve a debt claim, creditor-debtor relationship, or provision of capital. It is also not fees for technical services, as issuing a corporate guarantee is a financial service rather than consultancy and does not make available technical knowledge, experience, skill, know-how, or processes. As the payment is not chargeable to tax in India under the treaty, no tax deduction obligation arises, and disallowance for non-deduction of tax on the commission is unsustainable. en-us Mon, 15 Jun 2020 00:00:00 +0530 Thu, 18 Jun 2020 11:16:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396031 Corporate guarantee commission paid to a non-resident associated enterprise is not interest under the India-Netherlands DTAA because a contingent guarantee does not involve a debt claim, creditor-debtor relationship, or provision of capital. It is also not fees for technical services, as issuing a corporate guarantee is a financial service rather than consultancy and does not make available technical knowledge, experience, skill, know-how, or processes. As the payment is not chargeable to tax in India under the treaty, no tax deduction obligation arises, and disallowance for non-deduction of tax on the commission is unsustainable. Case-Laws Income Tax Mon, 15 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396031