TERMINATION OF TREATY ARTICLE 31 OF THE INDIA – US TREATY This Convention shall remain in force indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of the entry into force … Read more
Double Taxation – Introduction, Meaning and Concept Introduction to Double Taxation Consider the following diagram in which an Indian company (ICO) earns some income from a foreign company (FCO1). In this example there are two taxing jurisdiction which are involved, jurisdiction of FCO1, which is outside India, and jurisdiction of ICO, which is India. In … Read more
Article 4 – Concept of Residence in Tax Treaties – Double Taxation Avoidance Agreement Article 4 – General Structure Importance of concept of residence This Article provides the criteria as to who shall be considered a resident of a Contracting State. In case the application of such a criteria results in dual residency, the rules … Read more
Capital Gains to Non Residents Tax in India – Article 13 – Double Taxation Avoidance Agreement Article 13 – Capital Gains – Double Taxation Avoidance Agreement This is the most commonly used Article. It provides for the taxation of income arising from transfer of a capital asset, including transfer of shares. The right to tax … Read more
Article 12 – Royalty and Fees for Technical Services In this presentation we would learn about the taxation of Royalties and Fees for Technical Services, which in some cases is also known as Fee for Included services. The Model OECD clause Article 12, which deals with Royalty is as under : – ROYALTIES 1. Royalties … Read more
Concept of Permanent establishment (Permanent Establishment) under Article 5 of the OECD Model Convention Introduction and Permanent Establishment Meaning Article 5 of the OECD Model Convention deals with the concept of a Permanent Establishment (PE). The term Permanent Establishment is used to evaluate a Contracting State’s right to tax the earnings of the enterprise of … Read more
Article 2 – Taxes covered under Double Taxation Avoidance Agreement This Article provides the details of taxes, which would be covered for the purpose of tax Treaty. Any tax which is not provided in Article 2 is outside the purview of the tax Treaty. Article 2 defines the taxes, to which the Treaty shall apply. … Read more