https://www.taxtmi.com/caselaws?id=252484 Charter hire paid for a fully operational vessel under a time charter was examined for Indian tax withholding under section 195. Although domestic law in section 9(1)(vi) read with Explanation 2(iva) could widen royalty to cover use of equipment, Article 8 of the India-UAE DTAA specifically treated profits from operation of ships in international traffic, including incidental charter or rental of ships, as taxable only in the State of residence. Because the vessel operated between India and Maldives in international traffic, the treaty provision prevailed under section 90, so the payment was not royalty taxable in India and no tax deduction at source was required. en-us Tue, 21 Oct 2014 00:00:00 +0530 Mon, 27 Oct 2014 07:35:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252484 Charter hire paid for a fully operational vessel under a time charter was examined for Indian tax withholding under section 195. Although domestic law in section 9(1)(vi) read with Explanation 2(iva) could widen royalty to cover use of equipment, Article 8 of the India-UAE DTAA specifically treated profits from operation of ships in international traffic, including incidental charter or rental of ships, as taxable only in the State of residence. Because the vessel operated between India and Maldives in international traffic, the treaty provision prevailed under section 90, so the payment was not royalty taxable in India and no tax deduction at source was required. Case-Laws Income Tax Tue, 21 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252484