{"query":"What is the India–Hungary treaty withholding rate on royalties and fees for tech","matches":[{"id":"auto_wht_hungary","question":"What is the India–Hungary treaty withholding rate on royalties and fees for technical services?","answer":"Royalty: 10% of the gross amount — Article 12 (combined 'Royalties and Fees for Technical Services'), India–Hungary DTAA (as amended through 20 Aug 2026). Equipment-use royalties sit inside the royalty definition and take the same 10%. FTS: 10% — Article 12 (same article as royalties). Make-available (or the lower rate) was claimed only through the MFN protocol — DENIED without a s.159(1)/s.90(1) notification since Nestlé SA (2023 INSC 928). MFN CAUTION: Protocol clause 'With reference to Articles 10, 11 and 12': if under any Convention/Agreement/Protocol between India and a third State that is an OECD member India limits source taxation on dividends, interest, royalties or FTS 'to a rate lower or a scope more restricted than the rate or scope provided for in this Convention', the same rate or scope shall also apply under this Convention. Hungary is one of the corridors where practitioners claimed MFN-imported make-available/restricted FTS scope. Under Nestlé SA (SC 2023) the benefit is inoperative without a s.90(1) notification, and no MFN notification has been issued for Hungary through Aug 2026 — so treaty-text 10%/plain-FTS governs today, but any compiled rule should carry the MFN caveat. Gate: the treaty rate applies only through s.393(2) Sl. No. 17 → s.2(90)(c) with the s.159(8) TRC + Form 10F gate met; domestic comparator 20% + surcharge/cess (s.207(2)). Notes: fts-inside-royalty-article (single combined Art 12 for royalties and FTS, one 10% rate); equipment-royalty-in-definition-same-rate (ICS-equipment limb inside royalty definition, no separate rate); royalty-definition-includes-satellite-cable-optic-fibre-transmission (broader than OECD model); mfn-protocol-oecd-clause (rate and scope, Arts 10/11/12) — dormant post-Nestlé absent s.90(1) notification; hungary-domestic-law-has-no-WHT-on-royalties-to-companies (treaty cap mainly bites on the India-source side).","pinpoint":"Article 12 (combined 'Royalties and Fees for Technical Services'), India–Hungary DTAA","confidence":"verified","as_at":"14 Aug 2026","match_score":2,"treaty":"India–Hungary"}],"engine":"deterministic","llm_in_path":false}