As per section 90(5) of the Indian Income Tax (IT) Act, income of a Non-Resident arising from India is taxed as per the provisions of the IT Act or the relevant tax treaty, whichever is beneficial to the assessee.
Currently, section 115A of the IT Act provides for payments to a Non-Resident in the nature of Royalties or Fees for Technical Services (“FTS”) to be taxable @ 10% (plus surcharge and Cess).
