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1. Royalties and fees for technical services arising in one of the States and paid to
a resident of the other State may be taxed in that other State.
(ontleend aan Verdrag India-Verenigde Staten van 12 september 1989; van toepassing
met ingang van 1 april 1991)
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2. However, such royalties and fees for technical services may also be taxed in the State
in which they arise and according to the laws of that State, but if the recipient
is the beneficial owner of the royalties or fees for technical services, the tax so
charged shall not exceed 10 per cent of the gross amount of the royalties or the fees
for technical services.
(ontleend aan Verdrag India-Duitsland van 19 juni 1995; van toepassing met ingang
van 1 april 1997)
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3. The competent authorities of the States shall by mutual agreement settle the mode
of application of paragraph 2.
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4. The term 'royalties' as used in this Article means payments of any kind received as
a consideration for the use of, or the right to use, any copyright of literary, artistic
or scientific work including cinematograph films, any patent, trade mark, design or
model, plan, secret formula or process, or for information concerning industrial,
commercial or scientific experience.
(ontleend aan Verdrag India-Zweden van 24 juni 1997; van toepassing met ingang van
1 april 1998)
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5. For purposes of this Article, ‘fees for technical services’ means payments of any
kind to any person in consideration for the rendering of any technical or consultancy
services (including through the provision of services by technical or other personnel)
if such services:
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a) are ancillary and subsidiary to the application or enjoyment of the right, property
or information for which a payment described in paragraph 4 of this Article is received;
or
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b) make available technical knowledge, experience, skill, know-how or processes, or consist
of the development and transfer of a technical plan or technical design.
(ontleend aan Verdrag India-Verenigde Staten van 12 september 1989; van toepassing
met ingang van 1 april 1991)
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6. Notwithstanding paragraph 5, ‘fees for technical services’ does not include amounts
paid:
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a) for services that are ancillary and subsidiary, as well as inextricably and essentially
linked, to the sale of property;
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b) for services that are ancillary and subsidiary to the rental of ships, aircraft, containers
or other equipment used in connection with the operation of ships, or aircraft in
international traffic;
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c) for teaching in or by educational institutions;
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d) for services for the private use of the individual or individuals making the payment;
or
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e) to an employee of the person making the payments or to any individual or partnership
for professional services as defined in Article 14 (Independent personal services)
of this Convention.
(ontleend aan Verdrag India-Zwitserland van 2 november 1994; van toepassing met ingang
van 1 april 1995)
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7. The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the
royalties or fees for technical services, being a resident of one of the States, carries
on business in the other State in which the royalties or fees for technical services
arise, through a permanent establishment situated therein, or performs in that other
State independent personal services from a fixed base situated therein, and the royalties
or fees for technical services are effectively connected with such permanent establishment
or fixed base. In such case the provisions of Article 7 or Article 14, as the case
may be, shall apply.
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8. Royalties or fees for technical services shall be deemed to arise in one of the States
when the payer is that State itself, a political subdivision, a local authority or
a resident of that State. Where, however, the person paying the royalties or fees
for technical services, whether he is a resident of one of the States or not, has
in one of the States a permanent establishment or a fixed base in connection with
which the contract under which the royalties or fees for technical services are paid
was concluded, and such royalties or fees for technical services are borne by such
permanent establishment or fixed base, then such royalties or fees for technical services
shall be deemed to arise in the State in which the permanent establishment or fixed
base is situated.
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9. Where, by reason of a special relationship between the payer and the beneficial owner
or between both of them and some other person, the amount of the royalties or fees
for technical services, having regard to the royalties or fees for technical services
for which they are paid, exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such relationship, the provisions
of this Article shall apply only to the lastmentioned amount. In such case, the excess
part of the payment shall remain taxable according to the laws of each State, due
regard being had to the other provisions of this Convention.
