Sec. 143,rws 234A to 234C, of the IT Act and articles 12 and 7 of DTAA between India and USA

RELEVANT PARAGRAPH The application of 15 per cent rate of tax on the amount shown in the return of income would not fall under the category of determination of tax payable on the returned income on the basis of return of income under section 143(1) when the assessee had categorically stated in the note enclosed with the return of income that the returned income was not in the nature of `royalty’ within the meaning of article 12(7) of the DTAA between India and the USA but was a business profit not liable to be taxed in India in the absence of any PE in India. There may be a case where th...