APPLICABILITY OF ARTICLE 21 – OTHER INCOME
INCOME NOT COVERED UNDER FOLLOWING ARTICLE
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INCOME NOT COVERED UNDER FOLLOWING ARTICLE
ARTICLE 23(1) OF THE INDIA – US TREATY
Subject to the provisions of paragraph 2,
items of income of a resident of a Contracting State,
wherever arising,
which are not expressly dealt with in the foregoing Articles of this Convention
shall be taxable only in that Contracting State
KEY CHARACTERISTICS – ARTICLE 23(1) OF THE INDIA – US TREATY
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WHAT IS MEANT BY “DEALT WITH”
INCOME COVERED UNDER ARTICLE 21
TAXABILITY OF INCOME AS “OTHER INCOME” WHEN RELEVANT CLAUSE ABSENT – ROYALTY
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EXCESS PAYMENT TO RELATED PARTY
ARTICLE 23(2) OF THE INDIA – US TREATY
The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6 [Income from Immovable Property (Real Property)],
if the beneficial owner of the income, being a resident of a Contracting State,
carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and
the income is attributable to such permanent establishment or fixed base.
In such case the provisions of Article 7 (Business Profits) or Article 15 (Independent Personal Services), as the case may be, shall apply
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KEY CHARACTERISTICS – ARTICLE 23(2) OF THE INDIA – US TREATY
ARTICLE 21(3) OF THE INDIA US TREATY
Notwithstanding the provisions of paragraphs 1 and 2,
items of income of a resident of a Contracting State
not dealt with in the foregoing articles of this Convention and
arising in the other Contracting State
may also be taxed in that other State.