Tax Tribunal ‘Doubts’ The Application Of Tax Treaty Benefit To Dividend Distribution Tax: Khaitan & Co.
The Legal Library section collates quality and in-depth reports on regulatory developments, court rulings and policy changes authored by India’s top law firms and consultants. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of law and policy.
Khaitan & Co. Update
The Mumbai Bench of the Income Tax Appellate Tribunal, in the case of Deputy CIT versus Total Oil India Pvt. (ITA No. 6997/Mum/2019) (Taxpayer) has expressed ‘doubts’ over the correctness of certain decisions rendered by co-ordinate benches of the Tribunal on the issue of tax treaty applicability to dividend distribution tax.
In those decisions, it was held that in relation to dividends paid to non-resident shareholders, the rate of dividend distribution tax payable by an Indian company should not exceed the tax rate specified for dividend income in the applicable tax treaty between India and the country of tax residence of the non-resident shareholder.
Having expressed doubts over the correctness of those decisions, the Tribunal has requested the President of the Tribunal to constitute a ‘Special Bench’ (comprising three or more Tribunal members) to adjudicate on this issue.
Click on the attachment to read the full report:
This alert does not constitute legal advice and is for information purpose only. This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.