https://www.taxtmi.com/caselaws?id=470240 Interest paid by a non-resident to a Swiss bank on borrowings used in the business of an Indian partnership firm is deemed to accrue or arise in India. Section 195 applies to any person making a payment to a non-resident and is not limited to resident payers, provided the sum is chargeable to tax. Under the India-Switzerland tax treaty, the interest remained taxable in India because no Article 11(3) exception was established. Tax was therefore required to be withheld under Section 195, and failure to withhold resulted in disallowance of the interest expenditure under Section 40(a)(i). en-us Thu, 21 Mar 2013 00:00:00 +0530 Tue, 21 Jul 2026 14:43:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470240 Interest paid by a non-resident to a Swiss bank on borrowings used in the business of an Indian partnership firm is deemed to accrue or arise in India. Section 195 applies to any person making a payment to a non-resident and is not limited to resident payers, provided the sum is chargeable to tax. Under the India-Switzerland tax treaty, the interest remained taxable in India because no Article 11(3) exception was established. Tax was therefore required to be withheld under Section 195, and failure to withhold resulted in disallowance of the interest expenditure under Section 40(a)(i). Case-Laws Income Tax Thu, 21 Mar 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470240