DDT rate cannot exceed the DTAA prescribed rate

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that Dividend Distribution Tax (DDT) payable under Section 115-O of the Income-tax Act is subject to the beneficial rate prescribed under Article 10 of the India–Switzerland DTAA. 

Following the Bombay High Court's landmark decision in Colorcon Asia (P.) Ltd., the Tribunal directed refund of the DDT paid in excess of the treaty rate of 10%.