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India-France DTAA

Treaty signed: September 29, 1992  |  Effective from: August 1, 1994

● Live · Rates served from /api/tax-rules/dtaa/FR

Dividends

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Interest

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Royalties

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Capital Gains

Fees for Technical Services

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NRI / Practical Note: French-resident Indians have access to one of the more favourable India DTAAs with a flat 10% rate across dividends, interest, and royalties. Indian companies remitting fees to French firms benefit from the 10% FTS rate under this treaty.

Key Treaty Provisions

  • Comprehensive treaty covering all income types; particularly relevant for pharma (Sanofi, L'Oreal) and luxury goods sectors
  • France has ratified MLI; PPT and other MLI provisions apply
  • Dividends: 10% for all shareholders (no higher rate for controlling shareholders)
  • Capital gains on Indian shares: taxable in India
  • Employment income: 183-day rule applies for temporary visitors

Frequently Asked Questions

What is the TDS rate on royalties paid to a French software company by an Indian licensee?

Under the India-France DTAA, royalties (including software licensing fees where the payer is in India) are taxable at 10%. The French company must furnish TRC from the Direction Générale des Finances Publiques (DGFIP) and Form 10F to claim the 10% rate.

Does India tax French-company dividends paid to Indian residents?

Indian residents receiving dividends from French companies are taxed in India at their applicable slab rate (dividends are taxable income in India). France also withholds tax on dividends per its domestic law. The French tax can be credited in India under the relief of double taxation article.

How does India-France DTAA apply to a French consultant working in India?

If the French consultant stays in India for less than 183 days in a 12-month period and is paid by a French employer not bearing the cost through an Indian PE, the income is not taxable in India. Beyond 183 days, Indian taxation applies from day one of the India visit.

Browse all articles

20 articles
Art. 1
Persons Covered

Article 1 of the India-France DTAA governs persons covered.

Art. 4
Resident

Article 4 of the India-France DTAA governs resident.

Art. 5
Permanent Establishment

Article 5 of the India-France DTAA governs permanent establishment.

Art. 7
Business Profits

Article 7 of the India-France DTAA governs business profits.

Art. 8
Shipping, Inland Waterways, and Air Transport

Article 8 of the India-France DTAA governs shipping, inland waterways, and air transport.

Art. 9
Associated Enterprises

Article 9 of the India-France DTAA governs associated enterprises.

Art. 1010%
Dividends

Dividends paid by a company resident in one State to a resident of the other State may be taxed in the recipie

Art. 1110%
Interest

Interest arising in one State and paid to a resident of the other may be taxed in the recipient's State, with

Art. 1210%
Royalties

Royalties paid to a resident of the other State may be taxed in the recipient's State; the source State retain

Art. 12A10%
Fees for Technical Services

FTS - payments for managerial, technical, or consultancy services - are taxed at the treaty rate where a speci

Art. 13
Capital Gains

Article 13 allocates taxing rights over capital gains between India and France.

Art. 14
Independent Personal Services

Article 14 of the India-France DTAA governs independent personal services.

Art. 15
Income from Employment

Article 15 sets the taxing rights for salaries earned by an employee of one State who works in the other.

Art. 17
Artistes and Sportspersons

Article 17 of the India-France DTAA governs artistes and sportspersons.

Art. 18
Pensions

Article 18 of the India-France DTAA governs pensions.

Art. 19
Government Service

Article 19 of the India-France DTAA governs government service.

Art. 23
Elimination of Double Taxation

Article 23 sets out the mechanism by which double taxation is eliminated - typically through a foreign tax cre

Art. 25
Mutual Agreement Procedure (MAP)

MAP allows the competent authorities of India and France to resolve disputes - particularly transfer pricing d

Art. 26
Exchange of Information

Allows the competent authorities to exchange information necessary to apply the treaty or domestic tax laws.

Art. 29
Entitlement to Benefits (PPT / LOB)

Treaty benefits are denied where the principal purpose of the transaction was to obtain them.

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