Tribunal held that , If a non-resident assessee derives income from multiple sources in India, it is entitled to adopt the provisions of the Act for one source and the DTAA for the other source, whichever is more beneficial to it, even though the payer is common for both sources- Fees received by the assessee would be taxable under the Act as FTS (fees for technical services) under section 9(1)(vii) r.w.s. 115A(1)(b) @ 10% and not as business income and thus held that the maximum possible taxability in the hands of the assessee could not exceed 10%. (ITA Nos. 1635 & 1636/Mum/2017, dt. 12.10.2018)(AY. 2013-14)
Dimension Data Asia Pacific Pte. Ltd. v. DCIT (2018) 99 taxmann.com 270 ( Mum)(Trib),www.itatonline.org
S. 90: Double taxation relief – If a non-resident assessee derives income from multiple sources in India, it is entitled to adopt the provisions of the Act for one source and the DTAA for the other source, whichever is more beneficial to it, even though the payer is common for both sources- Fees received by the assessee would be taxable under the Act as FTS (fees for technical services) under section 9(1)(vii) r.w.s. 115A(1)(b) @ 10% and not as business income and thus held that the maximum possible taxability in the hands of the assessee could not exceed 10%.- DTAA- India -Singapore. [S.90(2),115A(1)(b), Art.5(6) ]