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.

Author: Tojahn Nakree
Country: Norway
Language: English (Spanish)
Genre: Politics
Published (Last): 10 September 2013
Pages: 434
PDF File Size: 11.9 Mb
ePub File Size: 11.83 Mb
ISBN: 301-5-23061-112-8
Downloads: 4991
Price: Free* [*Free Regsitration Required]
Uploader: Tojataxe

All this can result in serious double taxation of the same income. In such case, the excess Part of the payment shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State. 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.

Article 4 RESIDENT For the 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 any other criterion of a similar nature. Click to view the institutions registered indi section 80G, 12 A and more.

International Taxation >Double Taxation Avoidance Agreements

Capital represented by immovable property referred to in article 6 or rights treated as immovable property, owned by a resident of inndia Contracting State and situated in the other Contracting State, may be taxed in that other Contracting State. Want to work with us? Do remember that each DTAA has some or the other beneficial provision which can help ftance avoiding double taxation. For event material please click here Round Table Round Table: A student or business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other Contracting State solely for the purpose of his education or training, shall be exempt from tax in that other Contracting State on payments made to him by persons residing outside that other Contracting State for the purposes of his maintenance, education or training.

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.


Where income in respect of personal activities exercised by an entertainer or athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 15 and 16, be taxed in the Contracting State franfe which the activities of the entertainer or athlete are exercised.

Frznce the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 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.

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. Content Home About us.

Earning Outside India? DTAA Could Save You From Double Taxation

It is a bilateral or multilateral agreement between two or more countries to resolve the issues dtsa taxation of income, bring transparency and to stem tax evasion. 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 dfaa carefully analyse whether he is eligible for any special benefits under the relevant DTAA.

However, it shall not exceed the amount of French tax attributable to such income. India and francs the taxes as per the normal provisions of the tax laws of that country. For the purposes of this, provision, immovable property pertaining to the industrial or commercial operation of such company shall not be taken into account.

Double Taxation Agreements with France | Agreements | Law Library | AdvocateKhoj

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.

This would imply that the income is not included in taxable income at all. 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. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.


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.

News Details

This Article shall not apply to income from research if such research is undertaken primarily for the private benefit of a specific person or persons. The Court also dismissed the contention of the Revenue that when reference is made to one convention signed between India and another OECD member state for the purposes of ascertaining if it had a more restrictive scope or a lower rate of tax, then only that convention has to be used for both the purposes i.

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.

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. 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.

Limited Agreements Agreement for avoidance of double taxation of income of enterprises operating aircraft with Afghanistan Whereas frznce Government of India and the Government of Afghanistan have. If the tax rate in the resident country is lower than the foreign country, then he will be able to claim only to the extent of the rate at which the income is taxable in resident country.

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: Double taxation shall be avoided in the following manner: The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or tapes used for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.