Double Taxation Avoidance Agreement – Article 1 – Persons Covered Further, Article 1(2) deals with cases of taxation of fiscally transparent entities. Article 1(3) provides that except in certain cases, the Treaty shall not restrict right of a Contracting State to tax its resident under its domestic laws. Introduction and Basic Concepts of Tax Treaty … Read more
What is Double Taxation Avoidance Agreement (DTAA) ? A DTAA, also known as double taxation avoidance agreement, is an agreement entered into between two countries, to ensure that the same income does not suffer, double taxation in the countries, who entered into such an agreement. A DTAA it’s sometimes also referred to as Tax Treaty … Read more
Elimination of Double Taxation – Article 23 – Double Taxation Avoidance Agreement Applicability of Article 23 – Elimination of Double taxation In many cases, the application of tax Treaty may result into double taxation for tax payers. In such a case, in order to provide relief to such Tax payers, Article 23 provides for the … Read more
Directors Fees – Article 16 – OECD Model tax Convention Taxation of Director’s Fees – Article 16 Article 16 – India USA Treaty Directors’ fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the Board of Directors of a company which is a resident of … Read more
Article 28 – Member of Diplomatic Mission and Consular Posts ARTICLE 29– INDIA USA TREATY Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular offices under the general rules of international law or under the provisions of special agreements. CHARACTERISTICS Not related to tax matters Provides protection to fiscal privileges … Read more
TERMINATION OF TREATY ARTICLE 31 OF THE INDIA – US TREATY This Convention shall remain in force indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of the entry into force … Read more
Double Taxation – Introduction, Meaning and Concept Introduction to Double Taxation Consider the following diagram in which an Indian company (ICO) earns some income from a foreign company (FCO1). In this example there are two taxing jurisdiction which are involved, jurisdiction of FCO1, which is outside India, and jurisdiction of ICO, which is India. In … Read more
Article 4 – Concept of Residence in Tax Treaties – Double Taxation Avoidance Agreement Article 4 – General Structure Importance of concept of residence This Article provides the criteria as to who shall be considered a resident of a Contracting State. In case the application of such a criteria results in dual residency, the rules … Read more
Capital Gains to Non Residents Tax in India – Article 13 – Double Taxation Avoidance Agreement Article 13 – Capital Gains – Double Taxation Avoidance Agreement This is the most commonly used Article. It provides for the taxation of income arising from transfer of a capital asset, including transfer of shares. The right to tax … Read more
Article 12 – Royalty and Fees for Technical Services In this presentation we would learn about the taxation of Royalties and Fees for Technical Services, which in some cases is also known as Fee for Included services. The Model OECD clause Article 12, which deals with Royalty is as under : – ROYALTIES 1. Royalties … Read more