Article 17 – Artistes and Sportspersons

WHAT IS COVERED BY ARTICLE 17 ?

 

ARTICLE – 18(1) – INDIA-USA TREATY

Notwithstanding the provisions of Articles 15 (Independent Personal Services) and 16 (Dependent Personal Services)
income derived by a resident of a Contracting State
as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete
from his personal activities as such exercised in the other Contracting State
may be taxed in that other State
except where the amount of the net income derived by such entertainer or athlete from such activities (after deduction of all expenses incurred by him in connection with his visit and performance) does not exceed one thousand five hundred United States dollars ($ 1,500);
or its equivalent in Indian rupees for the taxable year concerned.

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CRITERION OF SERVICES

 

ENTERTAINER – WHO ALL ARE COVERED?

 

SPORTSPERSON AS AN ENTERTAINER

PERSONAL ACTIVITIES

 

INCOMES COVERED UNDER ARTICLE 17(1)

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CONSOLIDATED INCOME

KEY ISSUES

SOME ISSUES

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ARTICLE – 18(2) – INDIA-USA TREATY – EQUIVALENT ARTICLE 17(2)

Where income in respect of activities exercised by an entertainer or an athlete in his capacity as such
accrues not to the entertainer or athlete but to another person
that income of that other person may
notwithstanding the provisions of Articles 7 (Business Profits), 15 (Independent Personal Services) and 16 (Dependent Personal Services);
be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised
unless the entertainer, athlete, or other person establishes that
neither the entertainer or athlete nor persons related thereto participate
directly or indirectly in the profits of that other person in any manner
including the receipt of deferred remuneration, bonuses, fees, dividends, partnership distributions, or other distributions.

KEY FEATURES OF ARTICLE 17(2)

 

TRIANGULAR CASES – WHICH TREATY SHALL APPLY?

COMPUTATION OF INCOME IN STATE S

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ADIT V WIZCRAFT INTERNATIONAL ENTERTAINMENT (P.) LTD.

WITHHOLDING TAX IN INDIA

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