Tribunal Grants US LLC Treaty Benefits Under India-USA DTAA, Recognizes Fiscally Transparent Entities as Tax Residents.

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....The assessee, a Limited Liability Company (LLC) under US tax laws, was denied treaty benefits under the India-USA Double Taxation Avoidance Agreement (DTAA) by the Assessing Officer (AO), who proposed to assess the income at 25% instead of the concessional 15% rate. The AO concluded that the LLC did not qualify as a 'Resident' under Article 4 of the DTAA, as only entities liable to tax in their country are considered residents. However, the Tribunal held that the assessee, being a resident under Article 4 by virtue of incorporation and recognition as a separate entity from its members, qualifies as a 'person'. The assessee is liable to tax in the US under its Income Tax Law, as LLCs have the option to be taxed as corporations or have their .........