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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No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. For the purposes of this Article and Article 21, an individual shall be deemed to be a resident of a Contracting State if he is resident in nidia Contracting State in the “fiscal year” in which he frsnce the other Contracting State or in the immediately preceding “fiscal year”.
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.
Whereas the annexed Convention between the Government of the Republic of India and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital has come into force on the 1st day of August,on the notification by both the Contracting States to each other of the completion of the procedures required under their law for bringing infia force of the said Convention in accordance with paragraph 1 of article 30 of the said Convention.
Double taxation shall be avoided in the following manner: Gains derived by a resident nidia a Contracting State from the alienation of immovable property, referred to in Article 6, and situated in the other Contracting State may be taxed in that other Contracting State. A Lost Pursuit October 06, Where however, the person paying the royalties, fees for technical services or the payments for the use of equipment, whether he is a resident of a Contracting State or not has in a Contracting State a permanent establishment or a fixed base in connection with which the contract under which the royalties, fees for technical services or the payments for the use of equipment are paid was concluded, and such royalties, fees for technical services or payments for the use of equipment are borne by such permanent establishment or fixed base, jndia such royalties, fees for technical services or payments for the use of equipment shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.
International Taxation >Double Taxation Avoidance Agreements
Article 4 RESIDENT For staa purposes of this Convention, the term “resident of a Contracting State” means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of management or francee other criterion of a similar nature. In simple words, if the tax rate in the resident country is higher than the foreign country, then the taxpayer will have to pay the differential additional taxes in the home country. The provisions of this sub-paragraph shall not apply where tax is deemed to be paid in India according to the provisions of sub-paragraphs c and d.
For event material fgance click here Round Table Round Table: Many individuals are becoming global citizens, moving from one country to the other as part of their work requirements. Therefore, 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 jndia of the IT Act. Mission and Vision Distinctly Different.
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. Under this method, the country in which the taxpayer is a resident, allows him a deduction from the taxable income, on account of the taxes paid in another country on his foreign source.
Notwithstanding the provisions of paragraph 1, income derived by an entertainer or an athlete who is a resident of a Contracting State from his personal activities as such exercised in the other Contracting State, shall be taxable only in the first-mentioned Contracting State, if the activities in the other Contracting State are supported wholly or substantially from the public funds of the first-mentioned Contracting State, including any of its political sub-divisions or local authorities.
The term “pension” means a periodic payment made in consideration inria past services or by way of compensation for injuries received in the course of performance of services.
This provision shall apply also to the remuneration referred to in Article 19 and in paragraph 4 of Article Gains from the alienation of shares other than those mentioned in frwnce 4 representing a participation of at least 10 per rtaa.
The taxpayer will be able to claim the credit at a rate lower of the taxes paid in the foreign country and the taxes payable in trance home country as applicable on the doubly taxed income.
In such case, the provisions of Article 7, or Article 15, as the case may be, shall apply. 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.
To trust or to trustee — The interests to balance are delicate December 20, Income derived, by an individual or, a partnership of individuals who is, a resident of a Contracting State from the performance of professional services or other independent activities of a similar character shall be taxable only in that Contracting State except in the following, circumstances when such income may also be taxed in the other Contracting State: 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 Government of the Republic of India and the Government of the French Republic, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital.
For the purposes of this provision, immovable property pertaining to the industrial or commercial operation of such company shall not be taken into account. For the purpose of this article, interest on funds connected with the operation of aircraft in international traffic shall be regarded as profits derived from the operation of such aircraft, and the provisions of article 12 shall not apply in relation to such interest. Agreement for avoidance of double taxation and prevention of fiscal evasion with Australia Whereas the annexed Agreement between the Government of the Republic of India and the.
The term “permanent establishment” includes especially: Such tax credit shall be equal: Notwithstanding the provisions of Articles 15 and 16, income derived by a resident of a Contracting State as an entertainer such as a theatre, motion picture, radio or television artiste or a musician or as an athlete, from his personal activities as such exercised in the other Contracting State may be taxed in that other Contracting State.
Notwithstanding the provisions of paragraph 2: The Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the present Convention in addition to, or in place of, the taxes referred to in paragraph 1.
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. This Convention shall apply to persons who are residents of one or both of the Contracting States. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated.
As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that Contracting State concerning the taxes to which the Convention applies. The term “payments for the use of equipment” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, industrial, commercial or scientific equipment.
It is a bilateral or multilateral agreement between two or more countries to resolve the issues of taxation of income, bring transparency and to stem tax evasion. If not he can at least claim the credit for the taxes paid on such income in the foreign country. The term shall in any case include property accessory to immovable property, rights to which the provisions of general law respecting landed francr apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right vtaa work, mineral deposits, sources and other natural resources.
Earning Outside India? DTAA Could Save You From Double Taxation
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. Evolving strategies and structures for credit platforms in India February 08, News Articles Lending transactions: In such case, the provisions of Article 7 or Article 15, as the case may be, shall apply.
All other elements of capital of a resident of a Contracting State shall be taxable only in that Contracting State. Whereas the annexed Convention between the Government of the Republic of India and the Government of the French Republic for the etaa of double taxation and the prevention of fiscal inida with respect to taxes on income and on capital has come into force on the 1st day of August,on the notification by both the Contracting States to each other of the completion of the procedures required under their law for bringing into force of the said Convention in accordance with paragraph 1 of article 30 of the said Convention; 2.
Subsequently, only the provisions of paragraph 1 shall be applicable.