Treaty between India and Germany – Indian decision on applicability of tax treaty to a limited partnership

The Indian Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 4 July 2008 in the case of Assistant Director of Income Tax v. Chiron Behring Gmbh & Co. (2008-TIOL-419-ITAT-MUM) on whether a German limited partnership firm would be eligible to apply the beneficial provisions of the India-Germany tax treaty (the Tax Treaty) for taxability of income earned in India.

(a) Facts. The Taxpayer (i.e. Chiron Behring Gmbh & Co.) was a German limited par…