2012 (3) TMI 46
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....th Ericsson India (P) Ltd and Ericsson AB for procuring cellular telecommunication equipments, software, service and documentation. To facilitate the financing for such procurements, the applicant availed of a loan facility for $ 300 million from ABN Amro Bank NV Stockholm Branch and NORDEA Bank AB Sweden under a facility agreement dated 30.12.2009. That agreement was amended and restated on 28.1.2010. 2. The loan under the facility agreement was guaranteed by the Swedish Export Credits Guarantee Board (EKN)to the extent of 95% in respect of risk arising due to political and commercial events. The guarantee is provided in respect of the actual amount drawn down by the applicant from time to time. On 10.12.2010, the Royal Bank of Sco....
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.... per Article 11(3) of the Double Taxation Avoidance Agreement between India and Sweden ('India-Sweden tax treaty')? 2. If the answer to the question (1) is in the negative then what percentage of interest would be chargeable to tax in India? 3. In view of the facts stated in Annexure III, and also in the light of the declaration provided by SEK that it does not have a Permanent Establishment in India in terms of Article 5 of the India - Sweden tax treaty, whether the interest to be paid by the Applicant to SEK will be chargeable to tax in India as business profits under Article 7 of the India-Sweden tax treaty and would be subject to deduction of taxes at source under section 195 of the Act? 5. It is the case of the applicant that the loan....