https://www.taxtmi.com/caselaws?id=60104 Under the DTAA royalty provision, the decisive factor is the actual signing date of the contract, not any retrospective effective date assigned to it. Where royalty is otherwise taxable in India under section 9(1)(vi) and section 195 governs deduction at source, the concessional 30 per cent ceiling under Article 13(2) applies if the royalty is paid under a contract signed after the Convention entered into force. On the facts noted, the 10-12-1981 agreement was treated as a fresh contract executed after the DTAA began to operate, supported by correspondence, approvals and materially revised terms, so the royalty tax cap applied. en-us Fri, 18 Aug 2000 00:00:00 +0530 Mon, 03 Jan 2011 17:06:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60104 Under the DTAA royalty provision, the decisive factor is the actual signing date of the contract, not any retrospective effective date assigned to it. Where royalty is otherwise taxable in India under section 9(1)(vi) and section 195 governs deduction at source, the concessional 30 per cent ceiling under Article 13(2) applies if the royalty is paid under a contract signed after the Convention entered into force. On the facts noted, the 10-12-1981 agreement was treated as a fresh contract executed after the DTAA began to operate, supported by correspondence, approvals and materially revised terms, so the royalty tax cap applied. Case-Laws Income Tax Fri, 18 Aug 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60104