The Federal Department of Finance assumes no responsibility for errors or omissions in the texts of the contract made available here. The officially published versions in the Bundesgesetzblatt are still the relevant texts. The process of applying a double taxation agreement can be subdivided into a series of steps on the different types of provisions. 6. Avoid double taxation of income by dividing tax legislation between the country of origin in which the income is generated and the recipient`s country of residence; promoting cooperation between states or between states in fulfilling their obligations and ensuring the stability of the tax burden. 5. It is considered that the imposition of licence revenues as a lump sum for the transfer of or information outside India relating to data, documents, drawings or specifications relating to patents, inventions, models, designs, secret formulas or similar marks or objects must not exceed 20% of the gross amount of these payments. I would be grateful if you could confirm your agreement on the above definitions and, in this case, consider that note and your response as part of the agreement. Dear Sir, we had provided services to one of our customers in Zambia and our bill to the tune of Now we learned that the customer said he was going to pay after tax deduction. However, we are also in favour of paying income tax for the revenues of the above service.
In this case, we have to pay twice as much tax for the same income. Can you advise us to avoid such double taxation? I want to know how to treat india`s DTAA 3. The competent authorities of the contracting states are working to resolve by mutual agreement any difficulty or doubt about the interpretation or application of this agreement. They can also work together to eliminate double taxation in cases not included in this agreement. In addition to double taxation agreements on income and capital taxes, there are also special double taxation agreements for inheritance and gift taxes as well as vehicle tax.