https://www.taxtmi.com/caselaws?id=470245 Under the India-Japan tax treaty, the tax rate prescribed for royalties and fees for technical services applies without further enhancement by surcharge or education cess. Article 2 treats Indian income-tax as including surcharge, while education cess is characterised as an additional surcharge; both are therefore covered within the treaty framework. Article 12 limits tax on the gross amount of qualifying payments at the stipulated treaty rate. Accordingly, tax deducted on royalty and brand-usage payments to a Japanese resident need not include separate surcharge or education cess, and a disallowance based on alleged short deduction is unsustainable. en-us Mon, 03 Dec 2018 00:00:00 +0530 Tue, 21 Jul 2026 16:49:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470245 Under the India-Japan tax treaty, the tax rate prescribed for royalties and fees for technical services applies without further enhancement by surcharge or education cess. Article 2 treats Indian income-tax as including surcharge, while education cess is characterised as an additional surcharge; both are therefore covered within the treaty framework. Article 12 limits tax on the gross amount of qualifying payments at the stipulated treaty rate. Accordingly, tax deducted on royalty and brand-usage payments to a Japanese resident need not include separate surcharge or education cess, and a disallowance based on alleged short deduction is unsustainable. Case-Laws Income Tax Mon, 03 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470245