DTAA with Italy

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rate of tax between india and italy is the 20% which is given in DTAA for fees for technincal services.

but i am getting some clues form newspapers cuttings and discussions , that the above rate reduced to 10%.

but rate on website of income tax is 10% and alos rate in ready recknower is also 10%.

please can somebody give light on this issue.

thanks in advance.

Replies (1)

HI Sir,

Article 13 of DTAA says that rate of tax shall not exceed 20% {It never says that rate shall be 20%}

Now, Sec 115A(1)(BB) says that if ContRact is entered on or after  1st June 2005 then Rate of tax shall be 10%.

Hence DTAA has to be read with Sec 115A

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