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AAR holds payment by Streia (India) Ltd. (applicant) to Groupe Steria, France for management services taxable as Fees for Technical Services (‘FTS’) under. THE AYOIDANCE OF DOUBLE TAXATION – AN EVALUATION. Mahesh C. Bijawat*. THE RECENT AGREEMENT between India and France for the avoidance of. Get comprehensive agreements & Tax information exchange agreement between different countries & India to know how Non-resident can claim tax benefits.

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Sections 10 dfaa10 4B10 15 iv covering interest section 10 6 viia covering salaries and section 80L covering interest and dividends, of the Income-tax Act, 43 ofso far inndia they were in force on, and have not been modified since, the date of the signature of this Convention, or have been modified only in minor respects so as n. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an frace of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment alone or together with the whole enterprise or of such fixed, base, may be taxed in that other Contracting State.

The term “fees for technical services” as used in this Article means payments of any kind to any person, other than payments to an employee of the person making the payments and to any individual for independent personal services mentioned in Article 15, in consideration for services of a managerial, technical or consultancy nature.

The Services were provided by Steria France through telephone, fax, e-mail only and there was no presence of any personnel of Steria France in India and hence no risk of Permanent Establishment fixed or agency of Steria France in India existed. The provisions of sub-paragraph a of this paragraph shall apply only to a resident of India who is.

The primary purpose of the DTAA is to eliminate or avoid double taxation of income. The Indian tax shall not be deductible from such income. indka

Reach out for a great career in a great place! The term “pension” means a periodic payment made in consideration of past services or by way of compensation for injuries received in the course of performance of services. Agreement for avoidance of double taxation of income of enterprises operating aircraft with Afghanistan Whereas the Government of India and dtaa Government of Afghanistan have.

Income-tax Double Taxation Relief Aden Rules, – Present position thereunder These Rules being consistent with the corresponding provisions of the Dta, continued to be. The provisions of paragraph 1, shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in dtza other Contracting State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base.


Where, by reason of a special relationship between the payer franxe the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of fraance relationship, the provisions of this Article shall apply to the last mentioned amount.

What’s New Allotment of shares to existing shareholder at less than market value not taxable under section undia 2 vii where allotment not disproportionately higher than existing shareholding proportion, and part of genuine business transaction Tax Hotline: Such tax credit shall be equal: The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to ffrance from immovable property used for the performance of independent personal services.

For the purposes of this, provision, immovable property pertaining to the industrial or commercial operation of such company shall not be taken into account.

The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the debit-claim in respect of which the interest is paid is effectively connected with such frznce establishment or fixed base.

International Taxation >Double Taxation Avoidance Agreements

Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first mentioned Contracting State if: Notwithstanding the provisions of paragraph 2 and Articles 7, 15 and 16, where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such in a Contracting State accrues not to the entertainer or athlete himself but to another person, that income shall be taxable only in the other Contracting State, if that other person is supported wholly or substantially from the public funds of that other Contracting State, including any of its political sub-divisions or local authorities.

December 21, Webinars Webinar: Capital represented by immovable property referred frahce in article 6 or rights treated as immovable property, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other Contracting State.

Newsletters may offer personalized content or advertisements. Convention between the Government of the Republic of India and the Government of the French Republic xtaa the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital Notification No. As regards the application of sub-paragraph a to income referred to in articles 12 and 13, where the amount of tax paid in India in accordance with the provisions of these articles exceeds the amount of French tax attributable to such income, the resident of France receiving such income may present his case to the French competent authority.

The term shall in any frahce include property accessory to immovable property, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. In such case, invia provisions of Article 7, or Article 15, as the case may be, shall apply. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other Contracting State but only so much of them as is attributable to that permanent establishment.


For the purposes of this article interest arising on funds connected with the operation of ships in international traffic shall be regarded as profits derived from the operation of such ships, and the provisions of Article 12 shall not apply in relation to such interest. The term “professional services” includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants.

Earning Outside India? DTAA Could Save You From Double Taxation

Then he will be eligible to claim the credit for the foreign taxes in respect of the doubly taxed income against the respective tax liability in the country of residence. The term “permanent establishment” includes especially: The argument of the Taxpayer was that Clause 7 of the Protocol did not require any separate notification and could straightway be operationalised was not accepted by the AAR. While the Protocol under the India — France DTAA is self-operational and does not require notification, the protocol in the India – Switzerland DTAA is given effect to by way of an amendment notification wherein it specifically provides that governments of each of the states shall notify each other that the legal requirements for giving effect to the Amending Protocol have been satisfied and it shall enter into force on the date of later of the notifications.

If India does not have a tax treaty with the country from which you are earning income, then you can still claim foreign tax credit under section 90A of the IT Act. Dividends paid by a company which is resident of a Contracting State to a resident of the other Contracting State may be taxed in that other Contracting State. For the purposes of paragraph 1, “approved institution” means an institution which has been approved as an educational or research institution by the appropriate authority of the concerned Contracting State.

Do remember that each DTAA has some or the other beneficial provision which can help in avoiding double taxation. Have agreed as follows: Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows: The term “operation of aircraft” shall mean business of transportation by air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of aircraft, including the sale of tickets for such transportation on behalf of other enterprises, the incidental lease of aircraft and any other activity directly connected with such transportation.