Royalty or Fees for Technical service received by a foreign company or a non-resident non-corporate assessee from Government or an Indian concern |
Deduction under section 28 to 44D and 57 |
Deduction under Section 80CCC to 80U |
Rate of Tax on such royalty or fees for the Assessment years 2018-19 and 2019-20 |
A. Such royalty is received under an agreement made before April 1, 1961 or such technical fees is received under an agreement made before March 1, 1964 |
Al. Where the agreement is approved by the Government |
Note 1 |
Deduction is available |
40% |
A2. Where the agreement is not approved |
Note 1 |
Deduction is available |
40% |
B. Such royalty is received under an agreement made after March 31, 1961 but before April 1, 1976 or such technical fees is received under an agreement made after February 29, 1964 but before April 1, 1976 |
B1. Where agreement is approved by the Central Government |
Note 1 |
Deduction is available |
50% |
B2. Where such agreement is not approved by the Central Government |
Note 1 |
Deduction is available |
40% |
C. Such royalty or technical fees is received under an agreement made after March31, 1976 but before April 1, 2003 |
C1. Where such agreement is with the Government |
No deduction |
Deduction is available |
10% |
C2. Where such agreement is with an Indian concern the agreement is approved by the Central Government |
No deduction |
Deduction is available |
10% |
C3. Where the agreement relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy |
No deduction |
Deduction is available |
10% |
C4. Where such royalty is in consideration for the transfer of all or any rights (including the granting available of a licence) in respect of copyright in any book on a subject referred to in the proviso to sub-section (1A) of section 115A to the Indian concern or in respect of
computer software referred to in the second proviso to section 115A(1A) to a person resident in India |
No deduction |
Deduction is available |
10% |
C5. In any other case |
No deduction if taxpayer is a foreign company (non-resident non- corporate assessee can claim deduction) |
Deduction is available |
40% in the case of foreign company (applicable normal rate in the
case of non- resident non-corporate assessee) |
D. Such royalty or technical fee is received under an agreement made after March 31, 2003 |
D1. Where royalty and technical fees is effectively connected to Permanent Establishment (PE) in India |
Deduction is available |
Deduction is available |
Applicable rate |
D2. Where PE is absent but the case js covered by section 115A(1) [ i.e., C1 to C4 (supra) |
No Deduction |
Deduction is available |
10% |
D3. In any other case |
Deduction is available [see Note 3] |
Deduction is available |
Applicable rate |
