INDIA GERMANY DTAA PDF
As per the Article 11 of the double taxation avoidance agreement (DTAA) between India and Germany, the interest income earned in India by a. Get comprehensive agreements & Tax information exchange agreement between different countries & India to know how Non-resident can claim tax benefits. Double Taxation Avoidance Agreement – DTAA, fiscal evasion, prevention. Taxation Avoidance Agreement (DTAA) with Government of the Republic of India.
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Capital represented by immovable property, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State. Remuneration other than a pension, paid by a Contracting State, a land, a political sub-division or a local authority thereof to an individual in respect of services rendered to that State, land, sub-division or authority shall be taxable only in that State.
Thereafter, if there is a DTAA agreement with the country of your residence, tax would be implemented only at the rate of 10 per cent. Notwithstanding the provisions of paragraphs 1 and 2 where a person –other than an agent of an independent status to whom paragraph 5 applies–is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned State, if. This agreement shall apply to persons who are residents of one or both of the Contracting States.
Gains from the alienation of 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 of 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 personal services, including such gains from the alienation of such a permanent establishment alone or with the whole enterprise or of such fixed base, may be taxed in that other State.
In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. The term “pension” means a periodic payment made in consideration of past services or by way of compensation for injuries received in the course of performance of services.
How NRIs can claim benefits under DTAA
Where profits include items of income which are dealt with separately in other articles of this Agreement, then the provisions of those articles shall not be affected by the provisions of this article. Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
In the case of the German Democratic Republic tax, the request will be sent undia the Ministry of Finance to the Central Board of Direct Taxes, Department of Revenue, in India and will be accompanied by such certificate as is required by the laws of the German Democratic Republic to establish that the taxes have been finally determined on the basis of the relevant domestic laws, and are due from the taxpayer.
In so far as in a Contracting State and in exceptional cases the determination of the inida to be attributed to a permanent establishment in accordance with paragraph 2 is, impossible or gives gemrany to unreasonable difficulties, nothing in paragraph 2 shall preclude the determination of the profits to be attributed to a undia establishment by means of either apportioning the total profits of the enterprise to that permanent establishment or estimating on any other reasonable basis; the method of apportionment or estimation adopted shall, however, be such that the result shall be in accordance with the principles contained in bermany article.
Double Taxation Avoidance Agreement – DTAA
Nothing contained in this article shall be construed as obliging a Contracting State to grant to persons not resident in that State any per sonal allowances, reliefs, reductions and deductions for taxation purposes which are by law available only to persons who are so resident.
The agreement is signed to make a country an attractive destination as well as to enable NRIs to take relief from having to pay taxes multiple times. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make, if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
Subject to the provisions of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.
Download ClearTax Invest App. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
List of countries with whom India has Double Taxation Avoidance Agreement (DTAA)
The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in staa other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base.
Capital represented by immovable property referred to in article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State. Steuer auf Lizenzgebuhren tax on royalties. Such third party cookies may track your use on Goodreturns sites for better rendering. 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 indja the beneficial owner of the interest, the tax so charged shall not exceed 15 per cent.
For the dtax of credit referred to in letter ii of sub-paragraph b the Indian tax shall be deemed to be 10 per cent. For the purposes 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. Foul language Slanderous Inciting hatred against a certain community Others.
You should know the list of DTAA countries, simply because, you can avoid paying taxes twice.
List of countries with whom India has Double Taxation Avoidance Agreement (DTAA) – Goodreturns
The Income Tax Department appeals to taxpayers NOT to respond to such e-mails and NOT to share information relating to their credit card, bank and other financial accounts.
The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the idnia authority of the other Contracting State, with a view to avoidance of taxation not in accordance with the Agreement.
The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement.
However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: Income derived by an enterprise of a Contracting State from the operation of ships indua international traffic may be taxed in the other Contracting State. A professor or teacher who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State for the purpose of teaching or engaging in research, or both, at a university, college, school or other approved institution in that other Contracting State dtaw be exempt from tax in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date of his arrival in that other State.
However, no such deduction shall be allowed in respect of amounts, if gsrmany, paid otherwise than towards reimbursement of actual expenses by 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 in return for the use of patents, know-how or other rights, or by way of commission or other charges germang specific services germanny or for management, or, except in the case of a banking enterprise, dtza way of interest on moneys lent to the permanent establishment.
WHEREAS the Government of the Federal Republic of Germany and the Government of the Republic of India desire to conclude an Agreement for the avoidance of double taxation with respect to taxes on income and capital, and for promoting their mutual economic relations: For the purposes of this Agreement the term shall also cover any other maritime zone in which the Republic of India has sovereign rights, other rights and jurisdictions, according to the Indian Law and in accordance with international law idnia particular as laid down in the UN Convention of the law of the Sea.