https://www.taxtmi.com/caselaws?id=753362 A guarantee fee paid to a parent company for providing corporate guarantees to secure subsidiary loans is not "interest" under Article 12 of the Indo-UK DTAA or section 2(28A) because it is not referable to a debt-claim or loan transaction in favour of the recipient; the payment is for guarantee services, so the issue was decided against the assessee. The fee also accrued and arose in India under section 5(2) because the contractual right to receive it was created under the agreement with the Indian subsidiaries and became payable there, regardless of any later overseas consequences. The question whether the receipt could be treated as business income under Article 7 was left open. en-us Tue, 28 May 2024 00:00:00 +0530 Fri, 31 May 2024 10:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753362 A guarantee fee paid to a parent company for providing corporate guarantees to secure subsidiary loans is not "interest" under Article 12 of the Indo-UK DTAA or section 2(28A) because it is not referable to a debt-claim or loan transaction in favour of the recipient; the payment is for guarantee services, so the issue was decided against the assessee. The fee also accrued and arose in India under section 5(2) because the contractual right to receive it was created under the agreement with the Indian subsidiaries and became payable there, regardless of any later overseas consequences. The question whether the receipt could be treated as business income under Article 7 was left open. Case-Laws Income Tax Tue, 28 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753362