India: Payments for bareboat chartering of dredger not taxable as royalties under Belgium treaty (Tribunal decision)
Based on definition of royalties under treaty
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March 5, 2025
The Chennai Bench of the Tribunal held that payments for the bareboat chartering of a dredger were not taxable as royalties under the India-Belgium income tax treaty because “royalties” was defined under the treaty to include payments for the use of or right to use a “plan,” and did not include payments for the use of or right to use industrial, commercial, or scientific equipment.
The court also found that a bareboat charter was distinguishable from a time charter.
The case is: Baggerwerken Decloedt En Zoon v. DCIT
Read a March 2025 report prepared by the KPMG member firm in India