https://www.taxtmi.com/caselaws?id=396031 A corporate guarantee commission paid to a non-resident associated enterprise was treated as neither interest nor fees for technical services under the India-Netherlands DTAA. Interest under Article 11 requires a debt-claim and creditor-debtor relationship arising from provision of capital, which a contingent guarantee does not create. The guarantee fee also failed the Article 12 test because furnishing a corporate guarantee is a financial service and did not make available technical knowledge, experience, skill, know-how or processes. As the sum was not chargeable to tax in India, no tax deduction obligation arose under section 195, and disallowance under section 40(a)(i) was held 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 A corporate guarantee commission paid to a non-resident associated enterprise was treated as neither interest nor fees for technical services under the India-Netherlands DTAA. Interest under Article 11 requires a debt-claim and creditor-debtor relationship arising from provision of capital, which a contingent guarantee does not create. The guarantee fee also failed the Article 12 test because furnishing a corporate guarantee is a financial service and did not make available technical knowledge, experience, skill, know-how or processes. As the sum was not chargeable to tax in India, no tax deduction obligation arose under section 195, and disallowance under section 40(a)(i) was held unsustainable. Case-Laws Income Tax Mon, 15 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396031