DTAA BETWEEN INDIA AND BRAZIL
1) TDS ON PAYMENTS TO NON-RESIDENTS (Section 195)-
Any person responsible for paying any sum to a non-resident, which is chargeable to tax under the Income Tax Act shall at the time of payment deduct tax at source at the rates in force.
Rates in force: (Section 2(37A) + Section 90(2))
Rate specified in the relevant Finance Act (or)
Rates specified in DTAA
Whichever is beneficial to the assessee.
2) DTAA BETWEEN INDIA AND BRAZIL
ARTICLE 12: ROYALTIES AND FEES FOR TECHNICAL SERVICES
- Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
- However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed :
(a) 25 per cent of the gross amount of the royalties arising from the use or the right to use trade marks;
(b)15 per cent of the gross amount of the royalties in all other cases.
3) CREDIT OF TAX BORNE BY NON-RESIDENT-
ARTICLE 23: METHOD FOR THE ELIMINATION OF DOUBLE TAXATION
Where a resident of Brazil derives income from India which may be taxed in India in accordance with the provisions of DTAA, the amount of Indian tax payable in respect of that income shall be allowed as a credit against the Brazilian tax imposed on that resident and vice-versa.
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