The India-Singapore Double Taxation Avoidance Agreement (DTAA) allows businesses and individuals to avoid being taxed twice on the same income. It applies to Singapore residents earning income from India, and vice versa. The key benefit: royalty and Fee for Technical Services (FTS) are taxed at just 10% under the treaty, compared to 20% under Section 115A of the Direct Tax Code 2025. To claim these benefits, you need a Tax Residency Certificate (TRC), Form 10F, a No PE Declaration, a PAN card, and a DSC of the authorised foreign signatory.

• Royalty and FTS rate under India-Singapore DTAA: 10%
• Royalty/FTS rate under Section 115A (without DTAA): 20% + Surcharge + Cess
• Over $100 billion in cumulative FDI has flowed from Singapore into India, making it one of India's top investment partners

What is the India-Singapore DTAA?

The India-Singapore DTAA is a bilateral tax treaty between the Republic of India and the Republic of Singapore. Its purpose is to prevent double taxation of income earned across both countries, allocate taxing rights between the two nations, and reduce tax-related barriers to cross-border trade, investment, and services.

The agreement covers taxes on income and capital gains. It specifies which country has the right to tax particular types of income — or sets a capped rate where both countries share taxing rights. The treaty was originally signed in 1994 and has been amended through protocols, most notably in 2005 and 2017, to align with international tax standards including the OECD's Base Erosion and Profit Shifting (BEPS) framework.

As of 2016, a significant amendment removed the capital gains exemption that had historically made Singapore a preferred FDI route into India. Capital gains on shares acquired after April 1, 2017 are now fully taxable in India.

Who Can Claim India-Singapore DTAA Benefits?

Any resident of Singapore — whether an individual, company, or partnership — earning income from India is eligible to claim DTAA benefits, provided they meet the treaty's residency and beneficial ownership conditions. Similarly, Indian residents earning income from Singapore can claim relief in India.

• Singapore-incorporated companies paying royalties or FTS to Indian entities
• Indian companies receiving dividends, royalties, or FTS from Singapore
• Individuals resident in Singapore with Indian-sourced income (salary, business profits, capital gains)
• Foreign companies with no Permanent Establishment (PE) in India seeking reduced withholding tax

Important: Since 2017, a Limitation of Benefits (LOB) clause applies. Shell companies or entities set up purely for treaty shopping — without sufficient substance in Singapore — cannot claim DTAA benefits. The entity must demonstrate genuine economic activity and beneficial ownership.

Key Tax Rates Under the India-Singapore DTAA

The treaty sets specific maximum tax rates for various income categories. Where the domestic law rate (under India's Direct Tax Code 2025) is lower, the domestic rate applies. Where the treaty rate is lower, the taxpayer can opt for the treaty rate.

Income Type	DTAA Rate (India-Singapore)	Rate Under Section 115A (No DTAA)
Royalties	10%	20% + Surcharge + Cess
Fee for Technical Services (FTS)	10%	20% + Surcharge + Cess
Dividends	15% (if holding ≥25% shares); 25% otherwise	Taxable per domestic law
Interest	15%	20% + Surcharge + Cess
Capital Gains (shares acquired after 1 Apr 2017)	Taxable in India (source country)	As per domestic rates
Business Profits (no PE in India)	Taxable only in Singapore	Not applicable

For royalty and FTS payments, the 10% rate is significantly more favourable than the Section 115A rate of 20% plus applicable surcharge and cess, which can take the effective rate above 21-22% for many foreign companies.

Documents Required to Claim DTAA Benefits

To legally claim reduced withholding tax rates under the India-Singapore DTAA, the foreign entity must submit a complete compliance package to the Indian payer before the payment is made. Missing even one document can result in the full Section 115A rate being applied.

• Tax Residency Certificate (TRC): Issued by the Singapore tax authority (IRAS), confirming the entity is a Singapore tax resident for the relevant year
• Form 10F: A self-declaration filed on the Income Tax India portal confirming the details in the TRC (name, address, tax identification number, period of residency)
• No PE Declaration: A declaration by the foreign company confirming it has no Permanent Establishment in India — critical for business profit and FTS claims. See our detailed guide on No PE Declaration for DTAA
• PAN Card: Foreign companies must obtain a Permanent Account Number (PAN) in India to file returns or claim treaty benefits. Learn how to get a PAN card for a foreign company
• Income Tax Login: To file Form 10F online, the foreign company must have an active Income Tax India portal account (linked to the PAN)
• DSC of Authorised Foreign Signatory: A Digital Signature Certificate of the authorised representative of the Singapore company is required to file ITR and Form 10F in India

What Does Getting a DSC for a Foreign Signatory Involve?

Obtaining a Digital Signature Certificate (DSC) for a foreign director or authorised representative is a detailed process. The regular DSC of an Indian director or partner does not work for filing on behalf of a foreign company — an organisational DSC in the name of the foreign signatory is mandatory.

• Email and mobile OTP verification from the foreign individual
• Video verification of the foreign individual (conducted online)
• Address proof (driving licence, utility bill, or equivalent)
• Passport-size photograph
• Copy of valid passport

This process can be time-consuming if you are unfamiliar with Indian DSC procedures. Taxocity's compliance experts handle this end-to-end, including coordinating with the foreign signatory remotely.

Royalty and FTS: Section 115A vs. DTAA — Which Is Better?

For royalty and FTS payments from an Indian company to a Singapore entity, the DTAA rate of 10% is almost always more beneficial than the Section 115A rate. Under Section 115A of the Direct Tax Code 2025, the applicable TDS rate is 20% plus surcharge plus health and education cess — making the effective rate approximately 20.8% to over 21% depending on the taxpayer's surcharge slab.

However, to use the DTAA rate, the Singapore entity must submit all compliance documents (TRC, Form 10F, No PE Declaration, PAN). If these are not submitted before the payment, the Indian payer is legally required to deduct TDS at the higher Section 115A rate.

For detailed guidance on Form 10F for Singapore royalty payments, see our article on Form 10F for Singapore-India DTAA royalty payments.

Do Foreign Companies Need to File ITR in India?

A foreign company earning royalty or FTS from India can pay tax under Section 115A without filing an Income Tax Return (ITR) in India — as long as TDS has been correctly deducted at source. However, if the foreign company wishes to claim DTAA benefits (such as the 10% rate), it must file an ITR in India for that financial year. This is a mandatory requirement once treaty benefits are invoked.

Filing an ITR in India as a foreign company requires:

• A valid PAN
• An active Income Tax India portal login
• A DSC of the authorised foreign signatory
• All supporting income and tax documents

Taxocity has more than three decades of experience handling cross-border tax filings and can manage the complete ITR filing process for foreign companies, from PAN application to submission.

How to Claim India-Singapore DTAA Benefits (2026)

Follow this step-by-step process to correctly claim DTAA benefits and avoid excess TDS deductions on India-sourced income.

1. Apply for PAN in India: The Singapore entity must have an Indian PAN. This is the foundation for all tax filings and registrations. Read our guide on PAN for foreign companies in India.
2. Create an Income Tax India Portal Login: Register on the Income Tax of India portal using the PAN. This login is required to file Form 10F and ITR.
3. Obtain a Tax Residency Certificate (TRC) from IRAS: Apply to the Inland Revenue Authority of Singapore for a TRC valid for the financial year in question.
4. File Form 10F Online: Log in to the Income Tax India portal and file Form 10F. This is a self-declaration confirming the details in the TRC.
5. Prepare a No PE Declaration: Draft and sign a declaration confirming no Permanent Establishment exists in India. This document is submitted to the Indian payer.
6. Obtain DSC of Authorised Foreign Signatory: Procure the organisational DSC for the foreign authorised representative (see requirements above). Note: A regular Indian director's DSC cannot substitute this.
7. Submit Documents to the Indian Payer: Provide TRC, Form 10F acknowledgement, No PE Declaration, and PAN to the Indian company making the payment so they can apply the DTAA rate while deducting TDS.
8. File ITR in India (if claiming DTAA benefit): Once DTAA benefits are claimed, file the annual ITR in India using the DSC of the authorised signatory.

For a comprehensive overview of the entire process, refer to our guide on how to claim DTAA benefits in India.

What is Permanent Establishment (PE) Risk?

A Singapore company is taxable in India on business profits only if it has a Permanent Establishment (PE) in India. If the company has a PE — such as a fixed place of business, a dependent agent, or a construction site exceeding a certain duration — India gets taxing rights on profits attributable to that PE.

Common activities that can inadvertently create a PE include maintaining a project office for more than 9 months, having a dependent agent in India with authority to conclude contracts, or maintaining a server in India that is core to business operations.

It is essential for Singapore companies doing business in India to get a proper PE risk assessment before transacting. Taxocity's tax advisors provide a PE risk review as part of DTAA compliance engagements.

India-Singapore vs. Other Key DTAA Rates (Royalty/FTS)

Country	DTAA Rate: Royalty/FTS	Rate Without DTAA (Sec 115A)
Singapore	10%	20% + Surcharge + Cess
UAE	10%	20% + Surcharge + Cess
Sweden	10%	20% + Surcharge + Cess
Switzerland	10%	20% + Surcharge + Cess
China	10%	20% + Surcharge + Cess
Russia	10%	20% + Surcharge + Cess
Italy	20%	20% + Surcharge + Cess
Denmark	20%	20% + Surcharge + Cess
South Korea	10%	20% + Surcharge + Cess

How Taxocity Helps with India-Singapore DTAA Compliance

Taxocity has been providing cross-border tax and compliance services for over three decades, with a 4.8/5 rating from 5,000+ clients. Our DTAA compliance service for Singapore companies covers the complete end-to-end process:

• PAN application for the foreign company in India
• Income Tax portal registration and login setup
• TRC guidance and Form 10F filing
• No PE Declaration drafting and review
• DSC procurement for foreign authorised signatories (including video KYC coordination)
• Annual ITR filing in India for foreign entities claiming DTAA benefits
• PE risk assessment and advisory

Our 100% compliance guarantee means you can trust that every document is filed correctly and on time — eliminating the risk of excess TDS deductions or penalty notices from Indian tax authorities.

Talk to a DTAA Compliance Expert — get a free consultation on your India-Singapore tax obligations today.

Key Takeaways

1. The India-Singapore DTAA caps royalty and FTS tax at 10%, saving significantly versus the 20%+ Section 115A rate.
2. Capital gains on shares acquired after April 1, 2017 are taxable in India — the old exemption no longer applies.
3. To claim DTAA benefits, the Singapore entity needs: TRC, Form 10F, No PE Declaration, PAN, Income Tax login, and a DSC of the foreign authorised signatory.
4. Claiming DTAA benefits makes ITR filing in India mandatory for the foreign company.
5. A Limitation of Benefits clause applies since 2017 — shell companies without genuine Singapore substance cannot claim treaty protection.
6. The organisational DSC of the foreign signatory (not an Indian director's DSC) is required for all filings.

Sources

• Taxocity — How to Claim DTAA Benefits in India
• Taxocity — Form 10F for Singapore-India DTAA Royalty
• Taxocity — No PE Declaration for DTAA
• Taxocity — PAN Card for Foreign Companies in India

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Disclaimer: This article is for informational purposes only and does not constitute tax advice. Tax laws are subject to change, and individual circumstances vary. Please consult a qualified tax advisor before making any decisions based on the information provided here.