https://www.taxtmi.com/caselaws?id=424268 Interest on suppliers' credit under the India-Japan DTAA remained taxable at the concessional treaty rate because Article 11(6) applies only where the debt-claim is directly or indirectly attributable to a permanent establishment; mere existence of a PE and a general business nexus was insufficient. The record did not show effective connection with the PE, so Article 11(2) continued to govern. Surcharge and health and education cess could not be added to income taxed at the treaty-prescribed rate, as the DTAA rate controlled the full tax burden. Relief was therefore granted on surcharge and cess, while treaty-rate taxation on interest was sustained. en-us Mon, 20 Jun 2022 00:00:00 +0530 Thu, 28 May 2026 11:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424268 Interest on suppliers' credit under the India-Japan DTAA remained taxable at the concessional treaty rate because Article 11(6) applies only where the debt-claim is directly or indirectly attributable to a permanent establishment; mere existence of a PE and a general business nexus was insufficient. The record did not show effective connection with the PE, so Article 11(2) continued to govern. Surcharge and health and education cess could not be added to income taxed at the treaty-prescribed rate, as the DTAA rate controlled the full tax burden. Relief was therefore granted on surcharge and cess, while treaty-rate taxation on interest was sustained. Case-Laws Income Tax Mon, 20 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424268