Higher tax rate for foreign companies not declaring & paying dividends in India is legal

Shinhan Bank Vs Deputy Director of Income Tax (International Taxation) (ITAT Mumbai)

S.90 : Double taxation relief-Foreign Company-discrimination allowed-Company has not made prescribed arrangement-DTAA-India -Korea. [S. 2(22A), Art. 25(1)]

We find that, by Finance Act 2001, an Explanation (now known as Explanation 1) was inserted below Section 90, and it was with retrospective effect i.e. effective 1^st April 1962. This Explanation states that “For the removal of doubts,

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