https://www.taxtmi.com/caselaws?id=60709 Treaty attribution rules for a permanent establishment treat the branch as a separate enterprise only for computing attributable profits, and that fiction does not by itself create an unconditional deduction for interest credited to the head office. The deduction question still depends on domestic income-computation rules, under which a branch and its head office remain parts of the same enterprise, so the internal interest is not a real outgoing to another person. For withholding, section 195 applies only to payments to a non-resident of sums chargeable under the Act; an internal remittance to the head office is a payment to self, so no tax deduction at source arises and section 40(a)(i) is not attracted. en-us Mon, 22 Aug 2005 00:00:00 +0530 Fri, 19 Apr 2024 16:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60709 Treaty attribution rules for a permanent establishment treat the branch as a separate enterprise only for computing attributable profits, and that fiction does not by itself create an unconditional deduction for interest credited to the head office. The deduction question still depends on domestic income-computation rules, under which a branch and its head office remain parts of the same enterprise, so the internal interest is not a real outgoing to another person. For withholding, section 195 applies only to payments to a non-resident of sums chargeable under the Act; an internal remittance to the head office is a payment to self, so no tax deduction at source arises and section 40(a)(i) is not attracted. Case-Laws Income Tax Mon, 22 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60709