https://www.taxtmi.com/caselaws?id=448782 Under the India-Germany Double Taxation Avoidance Agreement, royalty and fees for technical services paid to a German resident beneficial owner were subject to the treaty cap under Article 12(2), and "income tax" in Article 2(3)(b) included surcharge. Because there was no material to show that the royalty and technical services income was effectively connected with a permanent establishment, it could not be clubbed with permanent establishment income to trigger the higher domestic surcharge threshold. The result was that the 5% surcharge on that income was not leviable, and the consequential demand for surcharge, cess and interest was unsustainable. en-us Wed, 17 Jan 2024 00:00:00 +0530 Tue, 30 Jan 2024 07:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448782 Under the India-Germany Double Taxation Avoidance Agreement, royalty and fees for technical services paid to a German resident beneficial owner were subject to the treaty cap under Article 12(2), and "income tax" in Article 2(3)(b) included surcharge. Because there was no material to show that the royalty and technical services income was effectively connected with a permanent establishment, it could not be clubbed with permanent establishment income to trigger the higher domestic surcharge threshold. The result was that the 5% surcharge on that income was not leviable, and the consequential demand for surcharge, cess and interest was unsustainable. Case-Laws Income Tax Wed, 17 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448782