As per India-Japan DTAA, levy of surcharge and cess cannot exceed tax rate of 10%

FCC Co. Ltd. Vs ACIT (ITAT Delhi) ITAT Delhi held that levy of surcharge and cess cannot exceed the tax rate of 10% as per India – Japan DTAA. Accordingly, as per article 12 of India – Japan tax treaty the tax to be charged on royalty and FTS shall not exceed 10% of the gross amount of royalty or FTS. Facts- The assessee is a non-resident corporate entity incorporated in Japan and a tax resident of Japan. In the year under consideration, the assessee had entered into various international transactions with its AE in India. In the return of income the assessee declared income of Rs.79,65,46...