Under the MFN clause of the treaty signed between India and Switzerland in 1994, and amended in 2010, rates of taxation at source agreed between India and an OECD country on dividends, fees, income, or royalties for technical services would be subject to a lower rate than those specified in...
However, in October 2023, the Supreme Court of India overturned a lower court ruling, concluding that the MFN clause could not be automatically enforced without a formal ‘notification’ under Section 90 of the Income Tax Act. The case in question involved Nestlé, the Swiss multinational ...