TABLE OF CONTENTS 1. INTRODUCTION; 2. THE MODEL CONVENTIONS; 2.1 OECD MODEL CONVENTION (OECD MC) ; 2.2 UNITED NATIONS MODEL CONVENTION (UN MC); 3. RATIONALE FOR INCOME CHARACTERIZATION AS ROYALTY AND FEES FOR TECHNICAL SERVICES; 3.1 CURTAILING BASE EROSION; 3.2 KNOW-HOW, TECHNICAL SERVICES AND CONSULTING SERVICES; 3.3 POSSIBILITIES FOR SOURCE TAXATION OF TECHNICAL SERVICES UNDER THE DTCS; 3.4 FEES FOR INCLUDED SERVICES IN THE DOUBLE TAX TREATY BETWEEN INDIA AND THE US; 4. TREATY PRACTICE IN THE US; 4.1 TREATY RATIFICATION AND INCORPORATION; 4.2 THE US MODEL CONVENTION; 4.3 TAXATION OF SERVICES; Role of tax treaties; Residence-based taxation; Definition of service income; Source of Services Income ; 5. US TAX TREATIES ; 5 .1 LATIN AMERICAN COUNTRIES ; DOUBLE TAX CONVENTION BETWEEN BRAZIL & THE UNITED STATES; DOUBLE TAX CONVENTION BETWEEN MEXICO & THE UNITED STATES ; 5.2 DOUBLE TAX CONVENTION BETWEEN CANADA & THE UNITED STATES; 5.3 DOUBLE TAX CONVENTION BETWEEN AUSTRALIA & THE UNITED STATES; 5.4 DOUBLE TAX CONVENTION BETWEEN UNITED KINGDOM & THE UNITED STATES; NITED STATES; TABLE OF CONTENTS 1. INTRODUCTION; 2. THE MODEL CONVENTIONS ; 2.1 OECD MODEL CONVENTION (OECD MC); 2.2 UNITED NATIONS MODEL CONVENTION (UN MC) ; 3. RATIONALE FOR INCOME CHARACTERIZATION AS ROYALTY AND FEES FOR TECHNICAL SERVICES; 3.1 CURTAILING BASE EROSION; 3.2 KNOW-HOW, TECHNICAL SERVICES AND CONSULTING SERVICES; 3.3 POSSIBILITIES FOR SOURCE TAXATION OF TECHNICAL SERVICES UNDER THE DTCs; 3.4 FEES FOR INCLUDED SERVICES IN THE DOUBLE TAX TREATY BETWEEN INDIA AND THE US; 4. TREATY PRACTICE IN THE US; 4.1 TREATY RATIFICATION AND INCORPORATION; 4.2 THE US MODEL CONVENTION; 4.3 TAXATION OF SERVICES; Role of tax treaties; Residence-based taxation; Definition of service income ; Source of Services Income ; 5. US TAX TREATIES ; 5.1 LATIN AMERICAN COUNTRIES; DOUBLE TAX CONVENTION BETWEEN BRAZIL & THE UNITED STATES ; DOUBLE TAX CONVENTION BETWEEN MEXICO & THE UNITED STATES; 5.2 DOUBLE TAX CONVENTION BETWEEN CANADA & THE UNITED STATES; 5.3 DOUBLE TAX CONVENTION BETWEEN AUSTRALIA & THE UNITED STATES; 5.4 DOUBLE TAX CONVENTION BETWEEN UNITED KINGDOM & THE UNITED STATES; 5.5 DOUBLE TAX CONVENTION BETWEEN GERMANY & THE UNITED STATES; 5.6 DOUBLE TAX CONVENTION BETWEEN JAPAN & THE UNITED STATES; 5.7 DOUBLE TAX CONVENTION BETWEEN CHINA & THE UNITED STATES; 5.8 COMMON FEATURES OF THE TREATIES ; 6. TREATY P RA CTI CE IN IND IA ; 6.1 POWER TO CONCLUDE DOUBLE TAX TREATIES ; 6.2 INCORPORATION INTO DOMESTIC LAW; 6.3 DOUBLE TAX AGREEMENTS VIs-A-VIS DOMESTIC LAW; Avoidance of Double Tax and Relief from Double Tax ; Taxability of Income; 6.4 ROYALTIES & FEES FOR TECHNICAL SERVICES; Section 9 (1) (vi) Royalty; Section 9 (1) (vii) Feesfor Technical Services; Rate of Withholding Tax on Royalties and Fees for Technical Services; Categorization of income under Royalties and Fees for Technical Services; 7. THE DOUBLE TAX AVOIDANCE AGREEMENT BETWEEN INDIA AND THE UNITED STATES; 7.1 ROYALTIES AND FEES FOR INCLUDED SERVICES; 7.2 ROYALTY; 7.3 FEES FOR INCLUDED SERVICES; 7.4 THE TECHNICAL EXPLANATION AND THE MOU; 7.5 FEES FOR INCLUDED SERVICES - ANALYSIS OF EXAMPLES IN THE MOU; 8. ROYALTY & FEES FOR INCLUDED SERVICES - CASE STUDIES; 9. CONCLUSION ; 10. BIBLIOGRAPHY ; ANNEXURE 1 - US TAX TREATIES ; ANNEXURE 2- THE ROYAL TIES ARTICLE IN VARIOUS TREATIES; ANNEX 3 -WITHHOLDING TAXES UNDER VARIOUS TREATIES; ANNEX 4 - CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND INDIA FOR THE AVOIDANCE OF DOUBLE TAXATION.