Article 12A - Fees for Technical Services
FTS - payments for managerial, technical, or consultancy services - are taxed at the treaty rate where a specific FTS article exists.
India-Latvia treaty rate on Fees for Technical Services (FTS): 10%. Make-available test.
Coverage: FTS includes payments for managerial, technical, or consultancy services that "make available" technical knowledge, experience, skill, know-how, or processes to the recipient (the "make-available" test). Standard services without knowledge transfer fall outside FTS and are governed by Article 7 (Business Profits) - taxable only where a PE exists in the source State.
No FTS article: Where a treaty does not contain Article 12A (e.g. India-UAE), technical-service payments are treated as Business Profits - meaning India can tax only if the foreign provider has a PE in India.