The Joint Venture had already withheld the tax on payments for technical know-how @ 10% and financial commitment fees @ 15% respectively under Section 195 of the Income-tax Act. The Commissioner allowed the claim to be taxed in accordance with the provisions of DTAA between India and Canada. On further appeal, the Tribunal held that the assessee was a resident of Canada and entitled to the benefit under DTAA. Thus, there was no infirmity in the decision of the Commissioner appeal. (AY. 2010 -11)
Dy. CIT v. Foundation Co. of Canada Ltd. [2024] 109 ITR 590 (Delhi) (Trib)
S. 195: Deduction at source – Non-resident – Other sums – Resident of Canada entitled to benefit under DTAA -DTAA -India -Canada.[S.195(2), Art.]