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Payment Of Income Vs. Treaty Protection - Morgan Stanely - Classic Case Of Treaty Interpretation Of Dtaa
In this article, we get to one of the recent interesting judgment in the arena of international taxation. The judgment is authored by Honourable Vice President, Mr Pramod Kumar of Mumbai ITAT[1]. As a student and learner of International Taxation, I would never miss reading a judgment of Mr Pramod Kumar. The way he interprets the law, the vast knowledge he possess and adequate application to the facts of the case, is no match. Let us proceed to understand the facts in the matter of Morgan Stanley Mauritius Co Limited vs. Deputy Commissioner of Income Tax, International Taxation Circle, 3(2)(2), Mumbai[2].
Morgan Stanely Mauritius Co Limited (for brevity ‘MS - Mauritius’) is a company incorporated and fiscally domiciled in Mauritius and has a tax residency certificate issued by Mauritius Revenue Authorities. The assessee is an investor in Indian Depository Receipts (for brevity ‘IDR’) issued by Standard Chartered Bank – Indian Branch (for brevity ‘SCB – India’). The underlying assets of IDRs are the shares of Standard Chartered Bank Plc (for brevity ‘SCB -UK’), held by the custodian Bank of New York (for brevity ‘BNY-US’). SCB – UK is listed on London Stock Exchange and the IDRs so issued are listed on Indian Stock Exchange.
