https://www.taxtmi.com/caselaws?id=432426 HC held that where payments for technical services are made to non-residents entitled to DTAA benefits, TDS must be deducted at the rate prescribed in the DTAA and not at 20% under Section 206AA. Relying on the Delhi HC decision in Danisco, it ruled that Section 206AA cannot override charging provisions or treaty obligations, and must be read down so that DTAA rates prevail. As the applicable DTAAs capped tax at 10% and the assessee deducted TDS accordingly, the HC decided in favour of the assessee. en-us Tue, 29 Nov 2022 00:00:00 +0530 Tue, 25 Nov 2025 10:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=432426 HC held that where payments for technical services are made to non-residents entitled to DTAA benefits, TDS must be deducted at the rate prescribed in the DTAA and not at 20% under Section 206AA. Relying on the Delhi HC decision in Danisco, it ruled that Section 206AA cannot override charging provisions or treaty obligations, and must be read down so that DTAA rates prevail. As the applicable DTAAs capped tax at 10% and the assessee deducted TDS accordingly, the HC decided in favour of the assessee. Case-Laws Income Tax Tue, 29 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=432426