https://www.taxtmi.com/caselaws?id=401425 Article 7 of the India-Germany tax treaty applies to business profits only where no specific distributive rule governs the income. Interest is governed by Article 11 and may be taxed in the source State subject to treaty limits and exemptions. Article 11(5) excludes this treatment only when the debt-claim is effectively connected with a permanent establishment in the source State. Where no such effective connection is established, interest taxed under Article 11 cannot be additionally taxed under Article 7. Commitment and agency fees integral to the same lending arrangement likewise cannot be separately brought under Article 7 when the related interest falls outside that article. en-us Fri, 04 Dec 2020 00:00:00 +0530 Mon, 07 Dec 2020 10:55:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=401425 Article 7 of the India-Germany tax treaty applies to business profits only where no specific distributive rule governs the income. Interest is governed by Article 11 and may be taxed in the source State subject to treaty limits and exemptions. Article 11(5) excludes this treatment only when the debt-claim is effectively connected with a permanent establishment in the source State. Where no such effective connection is established, interest taxed under Article 11 cannot be additionally taxed under Article 7. Commitment and agency fees integral to the same lending arrangement likewise cannot be separately brought under Article 7 when the related interest falls outside that article. Case-Laws Income Tax Fri, 04 Dec 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=401425