https://www.taxtmi.com/caselaws?id=401425 Interest income from Indian clients was governed specifically by Article 11 of the India-Germany treaty, so it could not be additionally taxed as business profits under Article 7 unless the Article 11(5) permanent establishment exception was met. The record did not show that the debt-claims were effectively connected with any permanent establishment, so that exception did not apply. Commitment fees and agency fees were treated as integral to the same lending arrangement and could not be separately brought to tax under Article 7 once the interest itself fell outside that article. Additional taxation under Article 7 was therefore not sustainable, while the interest remained taxable only under Article 11 subject to the treaty exemptions. 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 Interest income from Indian clients was governed specifically by Article 11 of the India-Germany treaty, so it could not be additionally taxed as business profits under Article 7 unless the Article 11(5) permanent establishment exception was met. The record did not show that the debt-claims were effectively connected with any permanent establishment, so that exception did not apply. Commitment fees and agency fees were treated as integral to the same lending arrangement and could not be separately brought to tax under Article 7 once the interest itself fell outside that article. Additional taxation under Article 7 was therefore not sustainable, while the interest remained taxable only under Article 11 subject to the treaty exemptions. Case-Laws Income Tax Fri, 04 Dec 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=401425