International Tax - Royalty and Fee for Technical Services

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Course Code: royalty_fee_technical

International Tax - Royalty and Fee for Technical Services View Preview
$20.00 $0.00

Course Detail
Lectures:
29
Contents:
3 hours
Skill Level:
Intermediate Level
Languages:
English

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The Course covers the taxes, that are applicable when a Non resident, who is a tax resident of any country, earns Royalty or Fee for technical Services (FTS) from another country. The course not only educates you on how to interpret this Article relating to the Double taxation avoidance agreement, it also covers what is Royalty/ Fee for technical services, what are the rights of the Source State (India in present course) to tax Royalty or FTS, rate of withholding taxes to be applied in Source State , what would be the implications if excess royalty/ FTS is paid to a related party and several other topics. The Course should take a total of 2 hours to complete. This course outlines the process of understanding taxation of Royalty/ FTS on a step by step basis, and is a enabling tool to learn the subject. 

What are the requirements?

  • Basic knowledge of local tax laws and applicability of International tax Treaties.

What am I going to get from this course?

  • Understand which payments amount to Royalty and Fee for Technical Services
  • Identify the Rights of Source State (India) and State of Residence to tax Royalty and Fee for Technical Services
  • Apply steps to be followed to ascertain Tax implications on Royalty and Fee for Technical Services and ascertaining withholding tax rates in Source State (India)
  • Know the conditions applicable to claim Treaty benefits – Test of beneficial ownership and proof of Residence
  • Understand when Royalty and Fee for Technical Services Arise in India under local laws/ Applicable Treaty
  • Comparison of Royalty under the Indian Income Tax Act, OECD & UN Model
  • Classify various payments into Royalty/ Fee for technical Services, including – a. Payment for Imparting of information b. Transfer of all or any rights c. Copyright of literary, artistic or scientific work d. Dry and Wet Lease amount to use of Equipment
  • Ascertain the Tax deductibility in hands of Payer of Royalty in Source State
  • Understand the meaning/exclusions of Fee for technical (Included) Services under India USA Treaty
  • When would Fee for technical Services be considered as “Make available”
  • Taxation of Royalty and for technical Services effectively connected to a PE
  • How would the tax apply to excess payments of Royalty and Fee for technical Services to related Enterprise
  • Impact of Most Favored Nation Clause (MFN Clause) on taxation of Royalty and Fee for technical Services

Who is the target audience?

  • This Course on International Tax is meant for individuals who want to make a career in International Tax. This provides the Rules of taxation of Royalty and Fee For Technical services with reference to the Indian Domestic Tax laws and the tax Treaty between India and USA, with suitable explanation for difference in other Treaties. While the Rules for Interpretation shall equally apply to other similar Treaties that are globally entered by various countries, this course would not contain reference to the local laws of country other than India and hence this aspect should be considered by students opting for this course.

 


Tags:
  • Section: Course Preview
  • Introduction To Royalties and Fee For Technical Services
  • What topics are covered in this Course of Royalty and Fee for Technical Service
  • Key Learning objectives of the Presentation
  • Royalty & FTS – Scenario of Taxability in India and Rights of India and Other Contracting state
  • Beneficial Provision of the Treaty or Act - Which one are applicable ?
  • Royalty & FTS – Taxability in India and Rights of India and Other Country
  • Proof of Tax Residence of Non resident – Section 90(4) & 90(5)
  • Approach to ascertain Tax implications on Royalty & FTS
  • Section 9(1) - Charging provisions for taxation of Royalty
  • Imparting of any information Classified as Royalty
  • Royalty and FTS - When do they Arise in India
  • Royalty for Transfer of all or any rights
  • Royalty under Income Tax Act – Types of payments covered
  • Scope of Total Income and Royalty & FTS
  • Tax deductibility of Royalty in hands of Payer
  • Article 12 (1) – India USA Treaty – Right of the state of residence to tax royalty
  • Right to opt for tax rate under the Act for one Contract and under the Treaty for another
  • Article 12(3) - Definition of Royalties
  • Whether both Dry and Wet Lease amount to use of Equipment
  • Lease and Sale of Ship - Which one is Royalty
  • Whether payment for use Copyright of literary, artistic or scientific work amounts to Royalty
  • Royalty definition - Comparison of Act, OECD & UN Model
  • Article 12 (4) – India USA Treaty – fee for included services
  • Concept of Make available and development and transfer of technical plans and designs
  • Article 12 (5) – India USA Treaty – FIS exclusion
  • Article 12(6) - Royalty and FIS effectively connected to a PE
  • ARTICLE 12(6) - Where do royalty or FTS arise
  • Article 12(8) - Excess Payments to related Enterprise
  • Most Favored Nation Clause (MFN Clause)

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