{"query":"What is the India–Netherlands treaty withholding rate on royalties and fees for ","matches":[{"id":"auto_wht_netherlands","question":"What is the India–Netherlands 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 article), India–Netherlands DTAA (as amended through 20 Aug 2026). The equipment limb is NOT in this treaty's royalty definition, so payments for the use of equipment fall outside the royalty article altogether — they are business profits (PE required) or other income on the treaty's own terms, NOT taxable at the royalty rate. FTS: 10% — Article 12 (paragraphs 2 and 5). The FTS article carries a MAKE-AVAILABLE restriction in the treaty text itself — services must make technology available (enable independent application) before they are taxable as FTS. MFN CAUTION: Yes — clause IV(2) of the Protocol is a classic MFN clause covering Articles 10-12 (dividends, interest, royalties/FTS) vis-a-vis later Indian treaties with OECD members. Netherlands is one of the corridors squarely hit by AO v. Nestlé SA (SC, 19 Oct 2023): the SC held MFN benefits require a s.90(1) notification, killing the widely-claimed 5% dividend rate imported from Slovenia/Lithuania/Colombia. HOWEVER, for royalty/FTS specifically the MFN benefits (10% rate, make-available definition) WERE notified in 1999 (S.O. 693(E)), so the 10% rate and make-available restriction remain safe post-Nestlé. Flag exists because practitioners commonly claimed further un-notified MFN positions on this corridor. 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 Article 12); make-available-in-text-via-notified-MFN (not mere protocol reading — distinguish from France/Sweden); equipment-limb-deleted: ICS equipment payments are NOT royalties post-1998, taxed as business profits only with PE; MFN-protocol corridor flagged by Nestlé SC 2023 (dividends exposure; royalty/FTS position notified and safe); Dutch government consolidated text still displays pre-amendment 20% Article 12 — engines scraping wetten.overheid.nl will get the stale rate.","pinpoint":"Article 12 (combined Royalties and Fees for Technical Services article), India–Netherlands DTAA","confidence":"verified","as_at":"10 Jul 2026","match_score":2,"treaty":"India–Netherlands"}],"engine":"deterministic","llm_in_path":false}