Payments to a non-resident, treaty documentation, s.195 withholding and gross-up

7C. PAYMENTS TO A NON-RESIDENT

7C.1 Withholding. The Customer shall deduct tax at source under s.195 of the Income-tax Act 1961 from every sum paid to the Supplier which is chargeable to tax in India, at the rates in force, being the rate under that Act or, where the Supplier is entitled to the benefit of a double taxation avoidance agreement under s.90(2) and has furnished the documents in clause 7C.2, the rate under that agreement if lower. The Parties record that, on the Effective Date, the Customer expects the payments to be characterised as [fees for technical services / royalty / business profits] and, on the basis of the agreement between India and [Supplier's country of tax residence], to be subject to withholding at [Withholding rate under the treaty (%)]% inclusive of surcharge and cess.

7C.2 Documents the Supplier must furnish. Not later than 15 days before the first payment in each financial year, and thereafter within 10 days of written request, the Supplier shall furnish to the Customer: