https://www.taxtmi.com/caselaws?id=440725 Article 23 of the India-Thailand DTAA applies a tax sparing credit where Thai dividend income is exempt under the Thai Investment Promotion Act or Revenue Code, because paragraph 3 deems the amount that would have been payable absent the exemption as "Thai tax payable." Actual payment of Thai tax is therefore not required when the exemption falls within those specified incentive laws. The treaty text itself controls the meaning of the foreign tax credit mechanism, and the exemption was treated as incorporated into the DTAA, so proof of separate foreign-law payment was unnecessary. The assessee was entitled to credit for the notional Thai tax on dividends. en-us Tue, 18 Jul 2023 00:00:00 +0530 Wed, 25 Oct 2023 11:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=440725 Article 23 of the India-Thailand DTAA applies a tax sparing credit where Thai dividend income is exempt under the Thai Investment Promotion Act or Revenue Code, because paragraph 3 deems the amount that would have been payable absent the exemption as "Thai tax payable." Actual payment of Thai tax is therefore not required when the exemption falls within those specified incentive laws. The treaty text itself controls the meaning of the foreign tax credit mechanism, and the exemption was treated as incorporated into the DTAA, so proof of separate foreign-law payment was unnecessary. The assessee was entitled to credit for the notional Thai tax on dividends. Case-Laws Income Tax Tue, 18 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=440725