Article 19 – Government Services

ARTICLE 19(1)(A) – INDIA-NETHERLANDS TREATY

Remuneration, other than a pension
paid by one of the States or a political sub-division or a local authority thereof
to an individual
in respect of services rendered to that State or sub-division or authority
may be taxed in that State

 

CHARACTERISTICS

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REMUNERATION PAID TO AN INDIVIDUAL

SALARIES, WAGES AND OTHER SIMILAR REMUNERATION ?

WHO COULD BE THE PAYOR ?

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GOVERNMENT ORGANIZATIONS COVERED AS PER INDIA – KOREA TREATY

Article 20(4)
The provisions of paragraph (1) of this article shall likewise apply in respect of
remuneration or pensions paid,
in the case of Korea, by the Bank of Korea, the Export-Import Bank of Korea and the Korea Trade Promotion Corporation and
in the case of India, by the Reserve Bank of India and the EXIM Bank of India,
and by organizations recognized by and agreed between the competent authorities of the Contracting States.

INDIA – JAPAN TREATY – SERVICES RENDERED FOR DISCHARGE OF FUNCTION OF GOVERNMENT NATURE

Remuneration other than a pension,
paid by a Contracting State, or a political sub-division or a local authority thereof,
to an individual;
in respect of services rendered to that Contracting State, or a political sub-division or a local authority thereof, in the discharge of functions of a governmental nature,
shall be taxable only in that Contracting State.

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ARTICLE 19(1)(B) INDIA – NETHERLANDS TREATY

However, such remuneration shall be taxable only in the other State
if the services are rendered in that State and
the individual is a resident of that State who:
1. is a national of that State; or
2. did not become a resident of that State solely for the purpose of rendering the services.

 

TAXABILITY

ARTICLE 19(2)(A) – INDIA – NETHERLANDS TREATY

Any pension paid by, or out of funds created by
one of the States or a political sub-division or a local authority thereof
to an individual
in respect of services rendered to that State of sub-division or authority
may be taxed in that State.

MEANING OF PENSION

ARTICLE 19(2)(B) AS PER INDIA – NETHERLANDS TREATY

However, such pension
shall be taxable only in the other State
if the individual is a resident of
and a national of that State

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ARTICLE 19(3) – INDIA – NETHERLANDS TREATY

The provisions of Articles 15, 16 and 18
shall apply to remuneration and pensions
in respect of services rendered in connection with a business carried on by
one of the States or a political sub-division or a local authority thereof.

SUMMARY OF TAXATION – ARTICLE 19(1)(B)

 

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