Taxation of fees for technical services: source states may tax with a negotiated cap, subject to PE exceptions. Article 12A grants concurrent taxing rights over fees for technical services: the source State may tax such fees but, where the beneficial owner is resident in the other Contracting State, source taxation is capped at a negotiated percentage of gross fees. Exceptions apply when fees are effectively connected with a permanent establishment or fixed base in the source State, in which case Articles 7 or 14 apply. Deemed-source rules, an arm's-length/related-party adjustment rule for excess payments, and a definition excluding employees, educational teaching and personal-use services are included. India has parallel domestic provisions addressing these fees.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of fees for technical services: source states may tax with a negotiated cap, subject to PE exceptions.
Article 12A grants concurrent taxing rights over fees for technical services: the source State may tax such fees but, where the beneficial owner is resident in the other Contracting State, source taxation is capped at a negotiated percentage of gross fees. Exceptions apply when fees are effectively connected with a permanent establishment or fixed base in the source State, in which case Articles 7 or 14 apply. Deemed-source rules, an arm's-length/related-party adjustment rule for excess payments, and a definition excluding employees, educational teaching and personal-use services are included. India has parallel domestic provisions addressing these fees.
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