9911796707
TMI Blog2013 (1) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... similar nature". Thus both the CIT(A) and the Tribunal has on examination of records found that respondent-assessee is filing Trade Tax Return in Germany and therefore is paying tax to which the DTAA applies. Further, the Tax Resident Certificate dated 18.03.2005 issued by German Authorities evidences the fact that the respondent-assessee is considered as a taxable unit under the taxation laws of Germany. Therefore, the DTAA is applicable to the respondent-assessee and the benefit of Article 12(2) thereof cannot be denied - it is not open to deny the benefit of the DTAA on the basis of the OECD commentary - in favour of assessee. Interest chargeable u/s 234B - Held that:- The issue is covered in favour of the assessee as Director of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion with respect to taxes on Income and Capital (DTAA) in respect of Royalties and Fees for technical services received by it in India. (b) The Assessing Officer by an order dated 28.05.2005, did not extend the benefit of the DTAA as claimed on the ground that the respondent-assessee is not liable to tax in Germany being a limited partnership. This conclusion was reached on the basis of the OECD Publication "The Application of the OECD Mode Tax Convention to Partnership." (c) In appeal the CIT(A) by order dated 15.05.2006 held that the respondent-assessee are paying Trade Tax in Germany which is tax paid on profit of the business. This trade tax is covered by Article 2 of the DTAA. Further reliance is also placed upon the Tax Residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the German Authorities. Further, in terms of Article 2(3) of the DTAA is applicable even in respect of payment of Trade Tax in Germany. Consequently, in his submission the order of the Tribunal dated 04.07.2008 calls for no interference. 6. We have considered the submissions. We find that respondent-assessee is receiving royalty and fees for technical services rendered in India. In terms of Article 12 of DTAA, royalty and fees for technical services received in India by a person resident outside India are not liable to tax in India in excess of 10% of the gross amount received. On examination of the DTAA, we find that in terms of Article 2(3) thereof the trade tax paid in Germany is one of the taxes to which DTAA applies. Further, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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