India’s Position on the OECD Model Tax Convention – At a Glance

 Comparison table highlighting how India’s treaty policy differs from the OECD Model Tax Convention, especially on key articles such as Permanent Establishment (Article 5), Business Profits (Article 7), Royalties (Article 12) and Capital Gains (Article 13).

Article	Subject Matter	OECD Model Tax Convention Position (Default)	India Reservation/Position
Article 3	Definitions (Person)	Person includes individuals, companies, and any other body of persons.	Only entities treated as a taxable unit under Indian law.
Article 5	PE - Building Site	PE if project lasts more than 12 months.	PE if project lasts more than 6 months.
Article 5	PE - Fixed Place (Warehouse)	Storage/display/delivery activities generally excluded.	Warehouse supplying storage facilities for others may create PE.
Article 5	PE - Preparatory/Auxiliary	Delivery activity excluded.	Delete delivery exemption.
Article 5	PE - Insurance	Risk data collection is preparatory/auxiliary.	Does not agree.
Article 5	Dependent Agent (Stock)	Stock for delivery alone generally not PE.	Habitual stock and delivery may create PE.
Article 5	Insurance	Reinsurance exception.	PE rule also applies to reinsurance.
Article 5	Home Office	Detailed conditions apply.	Broader PE approach.
Article 5	Contract Negotiation	Authority over all contract elements.	Participation in negotiations may suffice.
Article 7	Business Profits	2010 AOA approach.	Retains pre-2010 approach.
Article 7	Force of Attraction	Only directly attributable profits.	May tax similar sales profits.
Article 8	Bare Charter	Covered by Article 8.	May apply Article 12.
Article 8	Ancillary Income	Emission credits covered by Article 8.	Does not agree.
Article 9	Associated Enterprises	OECD TP Guidelines.	May deviate under domestic law.
Article 10	Dividends	Maximum rates provided.	Rates negotiated bilaterally.
Article 11	Interest Rates	Maximum withholding rate.	Reserves position on rate.
Article 11	Interest Scope	Leasing/factoring generally excluded.	May treat as interest.
Article 12	Royalties Taxing Rights	Residence taxation.	Source taxation right reserved.
Article 12	Royalties Scope	Equipment payments excluded.	Included in royalties.
Article 12	Royalties Commentary	Experience means previous experience.	Broader interpretation.
Article 13	Capital Gains	Residence state right generally.	Tax direct/indirect Indian share transfers.
Article 17	Entertainers	Limited scope.	Broader scope including appearances and cancellations.
Article 20	Students	Students/business apprentices.	May add teachers/researchers article.
Article 21	Other Income	Residence taxation.	Retain source taxation rights.
Article 23	Double Taxation	Exemption/credit methods.	May include tax sparing.
Article 24	Non-Discrimination	PE protection.	May omit paragraph 2.
Article 25	MAP Arbitration	Mandatory arbitration.	Does not accept.
Article 25	GATS Interaction	Includes other agreed procedures.	May exclude such reference.