The assessee a resident of UAE made an application for issuance of certificate under section 197 at nil rate. The Assessing Officer held that income earned by assessee was FTS and tax is to be deducted at 10 percent. On writ the court held that India-UAE, DTAA did not contain article of FTS and the assessee had no PE in India. Accordingly directed the Assessing Officer to issue certificate pegging withholding tax at 4 per cent.
WTS Energy DMCC v. Dy. CIT (2023) 451 ITR 175 / 292 Taxman 52 (Delhi)(HC)
S. 197 : Deduction at source-Certificate for lower rate-Income deemed to accrue or arise in India-Fees for technical services-India-UAE DTAA did not contain article of FTS and the assessee had no PE in India, directed to issue certificate pegging withholding tax at 4 per cent-DTAA-India-UAE. [S. 9(1)(vii), Art. 7, 10, Art. 226]