https://www.taxtmi.com/caselaws?id=424112 Interest on suppliers' credit remained taxable at the concessional gross rate under Article 11(2) of the India-Japan DTAA because Article 11(6) did not apply. The decisive test is whether the relevant debt-claim is effectively connected with a permanent establishment so that the interest is attributable to that establishment and falls under Article 7; the mere existence of a permanent establishment, or a general business nexus, is not enough. On the facts, there was no material showing that the debt-claim formed part of the permanent establishment's assets, that economic ownership was allocated to it, or that the establishment played a critical role in earning the interest. en-us Fri, 17 Jun 2022 00:00:00 +0530 Tue, 07 Jul 2026 10:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424112 Interest on suppliers' credit remained taxable at the concessional gross rate under Article 11(2) of the India-Japan DTAA because Article 11(6) did not apply. The decisive test is whether the relevant debt-claim is effectively connected with a permanent establishment so that the interest is attributable to that establishment and falls under Article 7; the mere existence of a permanent establishment, or a general business nexus, is not enough. On the facts, there was no material showing that the debt-claim formed part of the permanent establishment's assets, that economic ownership was allocated to it, or that the establishment played a critical role in earning the interest. Case-Laws Income Tax Fri, 17 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424112