TMI BlogApplication of the agreement between India and Belgium dated February 7, 1974, as modified by the Supplementary Protocol of October 20, 1984--Procedure regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... 01 ITR (St.) 6), was notified in the Gazette of India, Extraordinary, vide G.S.R. No.321 (E), dated March 2, 1988 (See [1988] 171 ITR (St.) 231). The Supplementary Protocol has effect in India in respect of income derived during any "previous year" beginning on or after the 1st January, 1987. 2. Under the new Article 10 (Dividends), the source country- tax rate on dividends has been limited to 15 per cent. of the gross dividends. This lower rate of tax applies only if the beneficial owner of dividends is a company and the dividends arise out of the investments made after January 23, 1988. Article 11 (Interest) provides that the source country-tax rate on interest will be limited to 15 per cent. of the gross interest, provided it is in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividends and interest income arising in Belgium may be granted in two ways. Under the first procedure, the tax is levied at source in accordance with the Belgian law, the excess amount of tax being refunded afterwards. Under the second procedure, the Belgian withholding tax is forthwith limited to the Agreement rate when the income is paid. Irrespective of how the reduction is applied, the beneficial owner of dividends or interest income has to make an application to the Belgian tax office in Form No. 276 Div.-Aut. for dividends and Form No. 276 Int.-Aut. for interest. These forms have to be filed by the Indian residents in duplicate; one copy is for the Belgian tax administration and the other for the concerned Income-tax Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planatory notes) can be obtained free of charge from the Bureau Central de Taxation Bruxelles--"Etranger", Boulevard Saint Lazare 10 bte 1, 1210 Bruxelles, Belgium. In respect of royalties arising in Belgium, the withholding tax rate of 25 per cent. will be applicable in accordance with the Belgian law. With regard to fees for technical services, no tax is deductible at source and the Agreement limitation if applicable shall be granted without any special procedure when the final tax liability of the Indian resident is assessed. II. Relief from Indian tax to the Belgian residents: In respect of dividends, interest, royalties and fees for technical services arising in India to a resident of Belgium, the payer of these incomes can deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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