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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The term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.
Notwithstanding the provisions of paragraphs 1 and 2 where a person other than an agent of an independent status to whom paragraph 6 applies is acting in one of the Contracting States on framce of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State, if: In determining the profits of a ftance establishment, there shall be allowed as deductions expenses which dtxa incurred for the purposes of the permanent indua, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere, in accordance with the provisions of and subject to the limitations of the taxation laws of ctaa Contracting State.
Gains from the alienation of shares other than those mentioned in paragraph 4 representing a participation of at least 10 per cent. Get our top news delivered to your inbox every morning, Monday to Friday. The term “interest” as used in this Article means income from debt-claims of invia kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures.
A Lost Pursuit October 06, Tax Hotline Allotment of shares to existing shareholder at less than market value not taxable under section 56 2 vii where allotment not disproportionately higher than existing shareholding proportion, and part of genuine business transaction December 28, Want to work with us?
DTAA: Double Taxation Avoidance Agreement – Taxmann
Where a resident of India derives income dta owns capital which, in accordance with the provisions of this Convention, may be taxed in France, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in France, whether directly or by deduction; and as a deduction from the tax on the capital of that resident an amount equal to the capital tax paid in France.
Royalties, fees for technical services and payments for the use of equipment arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. Profits derived by an enterprise of a Contracting State from the operation of ships in international traffic shall be taxable only in that Contracting State. Where by reason of the provisions of paragraph 1, a person, other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.
Such deduction in either case shall not, however, exceed that part of the income tax or capital tax as computed before the deduction is given which is attributable, as the case may be, to vtaa income or the capital which may be taxed in France.
The provisions of Articles 16, 17 and 20 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political sub-division or local authority thereof.
This is achieved by adopting the various methods listed below:.
Subject to the provisions of Articles 17, 18, 19, 20, 21 and 22, salaries, wages and other similar remuneration derived by frznce resident of a Contracting State in respect of an employment shall be taxable only in that Contracting State unless the employment is exercised in the other Contracting State. Nishith Desai Associates 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: Further, where such resident is a company by which surtax is payable in India, the deduction in respect of income tax paid in France shall be allowed in the first instance from income tax payable by the company in India and nidia to the balance, if any, from surtax payable by it in India.
The Indian tax shall not be deductible from such income.
All other elements of capital of a resident of a Contracting State incia be taxable only in that Contracting State. 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 Notification No.
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Double Taxation Avoidance Agreement – DTAA
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. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed: Remember that the tax treaty provision will apply only to the extent beneficial to the taxpayer.
Hence if someone has worked outside India for part of the year and qualifies as an ordinary resident of India for the respective tax year, then it is in his interest to carefully analyse whether he is eligible for any special benefits under the relevant DTAA.
Evolving strategies and structures for credit platforms in India February 08, dtxa When the prepayment pre-compute is levied in respect of dividends paid by a rfance which is a resident of France to a resident of India who is not entitled to the payment from the French Treasury referred to in paragraph 3 of this article with respect to such dividends, such resident shall be entitled to the refund of that prepayment, subject to the deduction of the withholding tax with respect to the refunded amount in accordance with paragraph 2 of this Article.
The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. To trust or to trustee — The interests to balance are delicate December 20, 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.
Earning Outside India? DTAA Could Save You From Double Taxation
Whereas the annexed Etaa 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 dtaaa 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.
As used in this Article the term “dividends” means income from shares or other rights, not being debt-claims participating in profits, as well as income from other corporate rights treated in the same manner as income from shares by the taxation laws of the Contracting State of which the company making the distribution is a resident and any other item other than interest which falls within the provisions of Article 12 treated as a dividend or distribution under that law.
Content Home About us. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting Idnia not dealt with in the foregoing Articles of this Convention, and arising in the other Contracting State may be taxed in that vrance Contracting State.