Live Help
Your Session Will Expire in   seconds.
What should we do?
Reset SessionCancel Session
 

FTS received by Swiss Entity is taxable at 10% on ‘gross basis’ under article 12 of Indo-Swiss DTAA

February 5, 2020[2020] 114 taxmann.com 51 (Mumbai - Trib.)
144 Views

INTERNATIONAL TAXATION : Fees for technical services received by assessee a Swiss entity from an Indian company is taxable on gross basis under article 12(2) of Indo Swiss tax treaty

• Service PE being triggered on account of rendition of services by assessee a Swiss entity in India, or vice versa, cannot place assessee to a disadvantageous position so far as tax liability in source jurisdiction is concerned. Unless assessee has a lower tax liability on taxability of PE on net basis under article 7 vis-à-vis taxability of FTS on gross basis under article 12(2), PE being triggered is in fact tax neutral.

• So far as permanent establishments under article 5(2)(l) of Indo Swiss tax treaty are concerned, i.e. service PEs, assessee has a choice to be taxed on gross basis at rates provided under article 12(2) or on net basis under article 7.

read more

taxmann.com
Payment
Best view in 1140 x 768