Dtaa benefit is available under 194lc
This query is : Resolved
17 September 2015
Foreign currency Loans was taken from a UAE residence bank and withholding tax is deposited under section 194LC @ 5% and applicable surcharge and cess. DTAA with UAE provides for flat 5% for interest from bank. In this case whether DTAA benefit can be availed under section 90(2) of Income TaX Act 1961 which provides rate to be applied which is more beneficial to Assessee.
17 September 2015
Yes DTAA benefit can be availed u/s 90(2).
17 September 2015
Who is ASSESSEE in your query?
Loan giver or Loan taker?
and what benefit are you talking?
Loan giver or Loan taker?
and what benefit are you talking?
17 September 2015
assesse is loan taker and benefit of lower rate of tax.
18 September 2015
You can definitely avail the lower rate of tax benefit.
Are you aiming at SAVING in surcharge and cess?
Are you aiming at SAVING in surcharge and cess?
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18 September 2015
Yes sir. Since DTAA of UAE provide for flat rate of 5% tax for interest and as per 194LC it is 5% and applicable surcharge and cess.
18 September 2015
DTAA provides that the term "tax" means "Indian tax" or "U.A.E. tax" as the context requires
Taking into account the Risk Reward ratio in this SAVING of so called surcharge, cess etc., take the call.
Taking into account the Risk Reward ratio in this SAVING of so called surcharge, cess etc., take the call.
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