Singapore and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. Whereas the annexed Agreement between the Government of the Republic of India and the Government of the Republic of Singapore for the avoidance of. The Mumbai Bench of the Income Tax Appellate Tribunal had occasion to examine the India Singapore Double Taxation treaty in a recent.
|Published (Last):||4 October 2013|
|PDF File Size:||16.51 Mb|
|ePub File Size:||12.28 Mb|
|Price:||Free* [*Free Regsitration Required]|
India Singapore Tax Litigation.
The Singapore-India Double Tax Treaty
In such case, the provisions of Article 7 or Article 14, as the case may be, xingapore apply. Click to view the institutions registered under section 80G, 12 A and more. India notifies third Protocol. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed: However, when the activities of such skngapore agent are devoted wholly or almost wholly on behalf of that enterprise itself or on behalf of that enterprise and other enterprises controlling, controlled by, or subject to the same common control, as that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph.
This piece was published in The Business Times on 10 January For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall mean profits derived from the transportation by sea or air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of the ships or aircraft, including profits from: Taxed in the rtaa in which employment is exercised.
Similarly, remuneration and pension paid by the Government of Singapore to any individual for services rendered on behalf of the Singapore Government is exempt from tax in India, except in cases where the individual is resident in India and is not a Singapore citizen.
Taxation of Interest Income Interest arising in a contracting country and paid to a resident of the singa;ore contracting country may be subject to taxation in the recipient country. However, if the enterprise carries out business in the other contracting country through a permanent establishment situated in that contracting country, then the profits or income derived from that permanent establishment alone will be liable to tax in the other contracting country.
The Income Tax Department appeals to taxpayers NOT to respond to such e-mails and NOT to ibdia information relating to their credit card, bank and other financial accounts.
Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 43 ofthe Central Government hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency engaged in the operation of ships or aircraft.
The term “dividends” as used in this Singappore means income from shares or other rights, not being debt-claims, participating in profits, -as well as income from other corporate rights which is dta to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. The provisions of paragraphs I and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
It is not clear if the circular was issued under Section 10 or 10A. Notwithstanding the provisions of paragraph 2 of this Article, as long as Singapore does not impose a tax on dividends in addition to the tax chargeable on the profits or income of a company, dividends paid by a company which is a resident of Singapore to a resident of India shall be exempt from any tax in Singapore which may be chargeable on dividends in addition to the tax chargeable on the profits or income of the company.
Directors’ fees and dtaw payments dtaaa by sjngapore resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.
Limitation of Benefits clause in the India Singapore DTAA – An analysis of recent decisions
However, such dividends skngapore also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed: There will be no disclosure of any trade, business, industrial or professional secret or trade process.
As much as it is true that the tax treaty between Singapore and India had a provision that any changes in nidia Mauritius treaty would automatically apply to the one with Singapore, the Republic is certainly within its rights to be dissatisfied with repeated renegotiations.
Interest income refers to income from government securities; income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures; or any other debt-claims whether or not secured by mortgage. Singapore has shown abundant good faith by being willing to be part of this renegotiation process.
Professional services includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants. The income-tax hereinafter referred to as “Singapore tax”. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall, in each Contracting State, be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the firstmentioned State if: Notwithstanding the provisions of paragraphs 3 and 4, an enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment if it provides services or facilities in that Contracting State for a period of more than days in any fiscal year in connection with the exploration, exploitation or extraction of mineral oils in that Contracting State.
Note that the information provided is for general guidance only and not meant to replace professional advice.
Singapore DTAA: India notifies third Protocol – The Hindu BusinessLine
The individual spends days or less in singapode country in which employment is exercised for a given fiscal year. The term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.
Charge of income tax The term “pension” means a periodic payment made in consideration of past services or by way of compensation for injuries received in the course of performance of services. Taxation of Royalties Royalty income arising in a contracting country and paid to a resident of the other contracting country may be subject to taxation in the recipient country.
Notwithstanding the preceding provisions of this Article, the term permanent establishment” shall be deemed not to include: Published on March 23, Imdia per that Article if the exemption under the treaty is qua an income which is taxable in other state only on receipt of income in that state then the exemption shall be allowed only when remittance of such income has been made.
Let us guide you further You may find these Singapore business guides useful in helping you make your decision: Note that this not apply to income from research, if such research is undertaken primarily for the private benefit of a specific person.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. Interest on funds connected with the operation of ships or aircraft in international traffic. Taxation of Professional Services Income Income derived by the resident of one contracting country in relation to personal or professional services is subject to tax only in that contracting country except under the following circumstances, in which case the income is liable to taxation in the other contracting dtaw as well: Notwithstanding paragraph 4, “fees for technical services” does not include payments: Payments received from overseas for their maintenance, education, study, research or training.