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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For event material please click here. 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, ondia any of its political sub-divisions or local authorities.

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.

Have agreed as follows: Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged indua than towards reimbursement of actual expensesby the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments undia return for the use of patents or other rights, or by way of commission for specific services performed or for inxia, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.

For the purposes francr this Article and Article 21, an individual shall be deemed to be a resident of a Contracting State if he is resident in that Contracting Frnace in the “fiscal year” in which he visits the other Contracting State or in the immediately preceding “fiscal year”. Evolving strategies and structures inia credit platforms in India February 08, Payments from the French Treasury provided for under sub-paragraph a of this paragraph shall be deemed to be dividend for the purpose of this Convention.

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Any pension paid by, or out of funds created by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that Contracting State or subdivision or authority shall be taxable only in that Contracting State. In this Convention, unless the context otherwise requires: Mission and Vision Distinctly Different.

Toggle navigation Home About Us. Globalisation is bringing the world closer with each passing day. August 08, High court allows import of UK treaty into France treaty: What’s New Allotment of shares to existing shareholder at less than ihdia value not taxable under section 56 2 vii where allotment not disproportionately higher than existing shareholding proportion, and part of genuine business transaction Tax Hotline: Royalties, fees for technical services or payments for the use indiia equipment shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, francw political sub-division, a local authority or a resident of that Contracting State.

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Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by 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 franve services may be taxed in that other Contracting Drance. 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.

The AAR further held that the restrictions imposed by the Protocol were only to limit the taxation at source for the specific items mentioned therein. Subsequently, only the provisions of paragraph 1 shall be applicable.

This would imply that the income is not included in taxable income at all. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some dtaz 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 such relationship, the provisions of this Article shall apply frabce the last mentioned amount.

However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph if it is shown that the transactions between the agent and the enterprise were not made under at arm’s length conditions. 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, Please turn on JavaScript and try again.

This is achieved by adopting the various methods listed below:. 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.

Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is a part of the social security system of a Contracting State or a political sub-division or a local authority thereof shall be taxable only in that Contracting State.

Earning Outside India? DTAA Could Save You From Double Taxation | HuffPost India

This is the most commonly vrance method of providing relief from double taxation and finds place in almost all the tax treaties. 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: Data derived by a resident of a Contracting State from immovable property including income from agriculture or forestry situated in the other Contracting State may be taxed in that other Contracting State.

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The inida “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. Income-tax Double Taxation Relief Aden Rules, – Present position thereunder These Rules draa consistent with the corresponding provisions of the Act, continued to be. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, fees for technical services or the payments for the use of equipment being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties, fees for the technical services or the payments for the use of equipment 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 royalties, fees for technical services or the payments for the use of equipment are effectively connected with such permanent establishment or fixed base.

Remember that the tax treaty provision will apply only to the extent beneficial to the taxpayer. Further, if a taxpayer is becoming franxe resident of both countries by applying the local tax laws, undia his residential status is determined by applying the tie-breaker rule in the relevant DTAA.

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.

Gains from the alienation of shares other than those mentioned in paragraph 4 representing a participation of at least 10 per cent. Considering the Court in this case has gone into the language of the Protocol, it can be safe to assume that language of each Protocol should nidia the determining factor as to whether it is self-operation or requires a specific notification.

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Many individuals are becoming global citizens, moving from one country to the other as part of their work requirements. Evolving strategies and structures for credit platforms in India February 08, News Articles Lending transactions: 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 Dtaq State of which the company making the distribution is a resident and any other item other idia interest which falls within the provisions of Article 12 treated as a dividend or staa under that law.

This provision shall apply also to the remuneration referred to in Article 19 and in paragraph 4 of Article