Tax Residence Certificate (TRC) A tax residence certificate is required to claim the benefit of a Double Taxation Avoidance Agreement (DTAA”) entered into between India and a foreign country. Tax residency certificate can be required in respect of two situations (a) A non-resident deriving income from India (b) An Indian resident deriving overseas income . … Read more
DTAA between India and USA The Double Taxation Avoidance Agreement DTAA between India and USA has been entered for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income . This DTAA between India and USA shall apply to persons who are residents of one or both of … Read more
Double Taxation Avoidance Agreement – Article 21 – Other Income OECD Model Tax Convention on Income and on Capital 2017 UN Model Convention 2017 1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 1. … Read more
Double Taxation Avoidance Agreement – Article 25 Mutual Agreement Procedure There may be a situation wherein a tax payer may believe that the taxation treatment by the source country is not in accordance with the provisions of tax Treaty. In such a case, he may request his country of resident to initiate mutual agreement procedure … Read more
Double Taxation Avoidance Agreement – Article 26 – Exchange of information In order to complete tax cases, the country may require certain information which may be available with the other Treaty partner. Article 26 provides for the information which may be exchanged and the manner in which such a request has to be made. Article/Para … Read more
Double Taxation Avoidance Agreement – Article 24 Non Discrimination Article/Para No. OECD Model Tax Convention on Income and on Capital 2017 UN Model Convention 2017 24 Non Discrimination Non Discrimination In order to provide equality in terms of tax treatment, this Article provides that the tax provision cannot be discriminatory merely because one person is … Read more
Double Taxation Avoidance Agreement – Article 14 Independent Personal Services UN Model 1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the … Read more
Double Taxation Avoidance Agreement – Article 11 Taxation of Interest This Article provides the right to both the countries in respect of taxation of interest. Generally, the interest is taxed in the sourced country at a given rate on gross basis. Thereafter such income may be taxable in the country of residence with credit for … Read more
Double Taxation Avoidance Agreement – Article 7 Business Profits Article 7 of the UN Model Convention and the OECD Model Convention deals with the taxation of business profits in a cross-border context. Double Taxation Avoidance Agreement – Article 7 Business Profits Article 7(1) of the OECD Model Convention is similar to the UN Model Convention … Read more
Double Taxation Avoidance Agreement – Article 3 – General Definitions This Article provides the meaning of various terms used in the tax Treaty. If a particular term is not defined in a tax Treaty, Article 3 may provide that the meaning of such term should be construed as per the domestic tax laws. Article/Para No. … Read more