What you'll learn

• 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