2013 (12) TMI 606

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....s have sought interpretation of Article 12 Sub-Articles (1), (2) & (5) of the Double Taxation Avoidance Treaty between India and France. Those are as follows:      "ARTICLE 12 - Interest - 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State.      2. However, such inte....

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....such case, the provisions of article 7 or article 15, as the case may be, shall apply." 2. Therefore, a plain reading of these provisions will make it absolutely clear that Sub-Articles (1) & (2) will apply inter alia when the recipient of interest does not have a permanent establishment in the country, where he has received interest. There is no dispute that the respondent assessee had a permane....