Under this MFN clause, if India signs a DTAA with an Organisation for Economic Co-operation and Development (OECD) country where withholding tax is lower than the tax treaty with Netherlands, Switzerland or France, then the lower rate will automatically be available to beneficiaries of DTAA with these countries.
hey further claimed that due to the MFN clause, this benefit of 5% should be available even to them under DTAAs with the Netherlands, Switzerland or Franc
he tax department had argued that the countries of Slovenia, Lithuania, and Colombia were not OECD countries when India signed DTAAs with the
artment argued that since they were not OECD countries at the time of execution of the tax treaty, it had no bearing on India's other DTAA
he apex court held that benefits under the MFN clause would be available only if the government issued a specific notification