TRC necessary but not sufficient

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The Memorandum to Finance Bill 2012 states that
It is noticed that in many instances the taxpayers who are not tax resident of a contracting country do claim benefit under the DTAA entered into by the Government with that country. Thereby, even third party residents claim unintended treaty benefits... Therefore, it is proposed to amend Section 90 and Section 90A of the Act to make submission of Tax Residency Certificate containing prescribed particulars, as a necessary but not sufficient condition for availing benefits of the agreements referredto in these Sections.”
While the language of the amendment as per the Finance Bill is worded differently, this amendment has the effect of nullifying “famous” and “much debated” CBDT Circular No.789 dated 13.4.2000, which was later upheld by the Supreme Court in Azadi Bachao Andolan ruling.
The amendment thankfully is not retrospective, but is applicable from AY 2013-14. However, it would certainly have a big impact on the India-Mauritius treaty and on the FII taxation.