Double taxation

This query is : Resolved

CA Rajat soni (Querist)
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18 June 2015 An individual has received a consultancy fee from nepal and the TDS is already deducted.
whether the credit for the tds deducted would be available to him for purpose of taxation in india?
The assesse is a resident of india and his ordinary course of business is in india.

The article 14 of the agreement between india an nepal states

"INDEPENDENT PERSONAL SERVICES
1. Income derived by a resident of a Contracting State is respect of professional services
orotherindependent activities of a similar character shall be taxable only in that state except in the followingcircumstances when such income may also be taxed in the other Contracting State:

(a) if he has a fixed base regularly available to him in the other Contracting state for
the purposeof performing his activities; in that case, only so much of the income as is attributable to thatfixed base may be taxed in that other Contracting State; or
(b) if his stay in the other Contracting state is for a period or periods amounting to or exceeding inthe aggregate 183 days in the relevant "previous year" or "year of income" as the case maybe; in that case only so much of the income as is derived from his activities performed in thatother State may be taxed in that other State.

2. The term "professional services" includes independent scientific, literary, artistic, educational orteaching activities, as well as the independent activities of physicians, surgeons, lawyers, engineers,architects, dentists and accountants."