DOUBLE TAX AVOIDANCE AGRE

DOUBLE TAX AVOIDANCE AGREEMENT

		Dividend			Interest
No.	Country DTAA between India &	General Rate	Special Rate [Note 5]	Level of voting control (%)	General Rate	Special Rate for Bank	Special Rate for Govt.	Royalties	Fees For Technical Services	Remarks
01.	Armenia	10			10#		E	10	10	Effective from AY 2006-07. # Interest derived and beneficially owned by certain entities is exempt.
02.	Australia	15			15			15#$	Note 2/ Note8	#Royalty @ 10% for Equipment Rental and for services ancillary or subsidiary thereto.
03.	Austria	10			10		E	10	10	Effective from AY 2003-04
04.	Bangladesh	10	10	10%	10		E	10	Note 1
05.	Belarus	15	10	25%	10		E	15$	15$	Effective from AY 2000-01
06.	Belgium	15			15	10		10#	10#	#Rate & scope modified on account of Indo-German Treaty
07.	Brazil	15			15		E	25#$	Note 1	#Royalties other than "Royalty arising from use or right to use trade marks" taxable at 15%
08.	Bulgaria	15			15		E	20#$	20$	#Royalties relating to Copyrights etc. taxable at 15%
09.	Canada	25	15	10%	15		E	10-20	10-20	#Royalty @ 10% for Equipment Rental and for services ancillary or subsidiary thereto.
10.	China	10			10		E	10	10
11.	Cyprus	15	10	10%	10		E	15#$	10#	#Royalties include "Fees for included services"
12.	Czech Republic	10			10		E	10	10	Effective from AY 2001-02
13.	Czechoslovakia	25	15	25%	15		E	30
14.	Denmark	20	15	25%	15+	10+	E	20$	20$
15.	Egypt	Note 4			Note 4		E	Note 3#	Note 1	#Royalties not taxable in the country of residence
16.	Finland	15+			10+		E	15#$	Note 2	Effective from AY 2000-01 #Royalty @ 10% for Equipment Rental and for services ancillary or subsidiary thereto.
17.	France	10			10		E	10	10
18.	Germany	10			10		E	10	10
19.	Greece	Note 3#			Note 3#		E	Note 3#	Note 1	#Dividend, interest & Royalties not taxable in the country of residence
20.	Hungary	10*			10*#		E	10*	10*	Effective from AY 2007-08, *For rates applicable up to AY 2006-07, please refer to Treaty # Interest received and beneficially owned by certain entities is exempt.
21.	Indonesia	15	10	25%	10		E	15$	Note 1
22.	Ireland	10-15			10		E	10	10	Effective from AY 2003-04
23.	Israel	10			10			10	10
24.	Italy	20	15	10%	15+		E	20$	20$
25.	Japan (Revised)	10			10#		E	10$	10$	#Interest derived and beneficially owned by certain entities is exempt.
26.	Jordan	10			10		E	20$	20$	Effective from AY 2001-02
27.	Kazakhstan	10			10		E	10	10
28.	Kenya	15			15+		E	20+$	17.5+$
29.	Korea (South)	20	15	20%	15	10	E	15$	15$
30.	Kuwait	10			10			10	10
31.	Kyrgyz Republic	10			10#		E	15$	15$	Effective from AY 2003-04. #Interest derived and beneficially owned by certain entities is exempt
32.	Libya	Note 3#			Note 3#		E	Note 3#	Note 1	#Dividend, interest & Royalties not taxable in the country of residence
33.	Malaysia	10			10#			10	10	Effective from AY 2005-06. # Interest derived and beneficially owned by certain entities is exempt.
34.	Malta	15	10	25%	10		E	15#$	10#	#Royalties include "Fees for included services"
35.	Mauritius	15	5	10%	20	E		15+$	Note 1	#Exempt if the transaction giving rise to the debt-claim has been approved in this regard by the Government, else taxable as per Domestic Law
36.	Mongolia	15			15		E	15$	25$
37.	Morocco	10			10#		E	10	10
38.	Namibia	10			10		E	10	10	Effective from AY 2001-02
39.	Nepal	20	10	10%	15	10	E	15$	Note 1
40.	Netherlands	10			10		E	10-20	10-20
41.	New Zealand	15			10		E	10	10	Protocol restricting treaty benefits to Indian or New Zealand residents
42.	Norway	20	15#	25%	15		E	10	10+	#Applicable for new contribution only. Rate of fees for Technical services modified as per Indo-German DTAA. *There is possibility that the rate of royalty may also be taken @ 10% instead of treatment as per domestic law However, this is subject to different interpretation. As per protocol, the capital gain tax is changed to 10%.
43.	Oman	12.5	10	10%	10		E	15$	15$
44.	Philippines	20	15	10%	15#	10	E	15 @ $	Note 1	#10% in case of FIs, Ins. Co. and on public issues of bond, debentures, etc. @ subject to approval of agreement
45.	Poland	15#			15		E	22.5$	22.5$	#Dividend should relate to new contribution after 1-4-1990
46.	Portuguese Republic	10			10#			10	10	Effective from AY 2002-03. #Only if the capital is owned by a company for an uninterrupted period of 2 years prior to payment of the dividend.
47.	Qatar	5-10			10		E	10	10	Effective from AY 2002-03.
48.	Romania	20	15	25%	15		E	22.5$	22.5$
49.	Russian Federation	10			10		E	10	10	Effective from AY 2000-01
50.	Saudi Arabia	5			10		E	10	Note 1	#Tax on fees for technical service to be decided after five years after review of tax treaty
51.	Singapore	15	10	25%	15#	10		10	10	#10% in case of Ins. Co. or similar FIs.
52.	Slovenia	5-15			10			10	10	Effective from AY 2006-07.
53.	South Africa	10			10		E	10	10
54.	Spain	15			15		E	10#	20#	#Rate & Scope modified on account of Indo-German Treaty
55.	Sri Lanka	15+			10		E	10	Note 1
56.	Sudan	10			10#		E	10	Note 1	Effective from AY 2006-07. #Interest derived and beneficially owned by certain entities is exempt
57.	Sweden	10			10#		E	10	Note 1
58.	Swiss Confederation	10			10#		E	10	Note 1
59.	Syria	E			7.5+		E	10+	Note 1
60.	Tanzania	15+	10+#	10%	12.5+		E	20+$	Note 1	#Only if the shares held during at least 6 months preceding payment of dividend
61.	Thailand	20	15	10%	20	10+#	E	15+$	Note 1	#If recipient is financial institution \including insurance company
62.	Trinidad & Tobago	10			10		E	10	10	Effective from AY 2001-02
63.	Turkey	15			15	10#	E	15$	15$	#Also applicable to financial institution
64.	Turkmenistan	10			10		E	10	10
65.	Uganda	10			10#		E	10	10	Effective from AY 2006-07. # Interest derived and beneficially owned by certain entities exempt.
66.	Ukraine	10-15			10		E	10	10	Effective from AY 2003-04
67.	United Arab Emirates	15	5	10%	12.5	5		10	Note 1
68.	United Arab Republic	Note 4			Note 4		E	Note 3#	Note 1	#Royalties not taxable in the [Egypt] country of residence
69.	United Kingdom	15			15	10	E	Note 8	Note 8	#Royalties @ 10% for Equipment Rental and for services ancillary or subsidiary thereto
70..	United States of America		20	15	10%	15	10*	E	Note 8	#Royalties @ 10% for Equipment  Rental and for services ancillary or subsidiary thereto. *Also applicable to bonafide FIs
71.	Uzbekistan	15			15		E	15$	15$
72.	Vietnam	10			10		E	10	10
73.	Zambia	15+	5+#	25%	10+		E	10+	Note 1	#Only if the shares held during at least 6 months preceding payment of dividend

Note: The rates mentioned above are the rates of tax applicable in the source country. Taxability in the country of residence would be as per the domestic law of country of residence, unless otherwise specified.

+ Beneficial ownership not required

E Exempt from tax

$ For agreement made after 31st May, 1997, the rate of tax under the Income Tax Act on royalty or fees for technical services receivable by a foreign company is reduced to 20% (plus Surcharge & Cess, as applicable) by the Finance Act, 1997. As per section 90(2), this rate may be adopted if is lower than rates under DTAA. The rate is reduced to 10% (plussurcharge & cess, as applicable) for agreements entered into on or after 31st May, 2005 vide Finance Act, 2005.

Note 1: There is no separate provision for fees for Technical Services under the Treaty. Therefore, the same may be taxed under "Business Profits" or "Independent Personal Services" as per relevant DTAA, whichever is applicable.

Note 2: There is no separate provision for Fees for Technical Services under the Treaty. Therefore, the same way be taxed under "Business Profits" or "Independent Personnel Services" as per relevant DTAA, whichever is applicable.

Note 3: Taxable as per Domestic Law.

Note 4: Refer Treaty for detailed provisions.

Note 5: Special Rate of Tax on Dividend (other than Section 115-O Dividend) as mentioned in col. 4 is applicable if the recipient is a company beneficially holding at least specified percentage of voting control (mentioned in col, 5) in the company declaring Dividend.

Note 6: The above rates should be applied after carefully analysing and applying each Article of the Treaty and the Protocols, if any.

Note 7: Dividend u/s. 115-O is exempt u/s. 10(34) of the IT Act, 1961.

Note 8 : Royalties and fees for technical services would be taxable in the country of source at the following rates

(i) during first five years of aggeement     - 15 per cent if payer is Government or specified organisation.
                                                        - 20 per cent in other cases.

(ii) subsequent years, 15 per cent in all cases.