International tax concept applied where a tax resident of one country, earns income from another country, and both the country seek to tax such income. The international tax consultant can help taxpayers to ascertain the correct amount of taxes in both the countries so that there is no double taxation or excess tax paid in any of the country.
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Welcome to Sorting Tax Advisory Services Private Limited, where we offer expert services in the sectors of International Tax Services. We understand that navigating the complexities of international tax laws can be challenging for businesses and individuals alike, and that’s why our team of experienced professionals is here to help. With our comprehensive knowledge of international tax regulations, we can provide tailored solutions to help you optimize your tax planning, ascertaining right tax liabilities, and ensure compliance with all relevant laws and regulations. Whether you’re an individual with international assets, an expatriate living abroad, or a business with cross-border operations, we have the expertise and resources to help you achieve your tax objectives. So, whether you need assistance with tax planning, compliance, or dispute resolution, we are here to provide you with the highest level of service and support. As the world becomes increasingly interconnected, international tax has become a critical component of financial management for businesses operating across borders. Our international tax experts can help you navigate the complexities of cross-border tax laws and optimize your global tax strategy. We also provide income tax services, UAE Corporate Tax, and Mergers & Acquisition Tax Services through our experts.
International Tax Services offer by Sorting Tax
Our international tax consultant can assist you to determine right amount of tax, in respect of an income, which is earned by a tax resident of one country, from business operations, rendering of services, employment, capital gains, dividend, interest or any other income, in another country. Our income tax consultant can assist you to know the residential status of taxpayers and taxation thereon.
No PE Certificate or No PE Declaration, is a certificate given by a non resident, who is deriving any income from India (which could be interest, Fee for Technical Services, Business Income etc.), which enables the Indian payor to with hold tax at a lower rate applicable to a particular income. The business tax consultant assists you in compliance with the No PE Certificate.
A Tax Residency Certificate (TRC), is a document issued by the tax authorities of the country of the Non-resident, affirming that the NR is a resident of that country for the tax year in question for DTAA applicability, and is eligible to claim the benefit of the Tax Treaty. Our corporate tax advisory assists you in review of the TRC.
Our Transfer Pricing consultant assists you in calculating the Arm’s length prices of goods and services provided to companies under common control. The tax advisor assists you in filing of Form 3CEB, Form 3CEAA, Form 3CEAB , Form 3CEAC whichever are applicable and helps taxpayer to meet their Transfer Pricing obligation and ascertain correct amount of taxes, based on such arm’s length price.
Foreign Direct Investment in India or FDI in India, refers to investment in Indian companies by non-residents. Foreign Direct Investment (FDI) is considered as a major source of non-debt financial resources for economic development of a nation. There are various aspects involved in Foreign Direct Investment in India where our team can assist you, like sectors where investment can be made, condition and pricing on transfer, approval from Government of India and related nuances.
Investing in Indian companies or purchasing shares of Indian companies by foreign and institutional investors is inbound investment. There are two permitted routes for Inbound investment, are as under:
Automatic Route – Under this no permission is required from the Indian Government.
Approval/Government Route – Under this permission is required from the Indian Government.
Outbound Investment is the investment of money in a particular instrument of a company outside India by an Indian company or an Indian resident individual . This is a business strategy where domestic businesses expand their operations to foreign countries. A merger or acquisition can also be considered as an outward direct investment.
Most frequent questions and answers
Under the Indian tax laws, an individual’s income tax liability for a financial year is dependent on his residential status, which is based on the number of days of stay in India. As per Section 6 of the Income-tax Act, 1961 (‘the Act’), an individual is considered as a ‘Resident’ in India, if he satisfies either of the following basic conditions:
Condition 1: He is present in India for 182 days or more during the current FY; or
Condition 2: He is present in India for 60 days or more during the current FY and 365 days or more during the preceding 4 FYs.
If both the above conditions are not satisfied, then the person is said to be a ‘Non-resident Indian’ (NRI).
Associated enterprise of an enterprise can be through common control, common ownership or common management , either directly, indirectly or through common person.
Arm’s length price is the price which would be applied by two independent parties under independent conditions.
The conditions under which the transaction has taken place, should not have been designed in a manner so that certain predetermined results (in terms of profits/loss of entities) .
Assessee having international transactions between associated enterprises are compulsorily required to obtain an independent accountant’s report in Form 3CEB which is to be submitted online to the Income Tax department. Assessee in the Transfer Pricing Report (TP Report) requires that the international transactions have been carried out at Arm’s length.
The due date to file TP report i.e., Form 3CEB is on or before 31st October following the relevant financial year.
Tax Residency Certificate is required y a non-resident to claim claim relief under the Double Taxation Avoidance Agreement between India and their country of residence.
To obtain tax residency certificate in India, Form No. 10FA is required to be filed before the Assessing Officer (AO). It is to be noted that the application for a Tax Residency Certificate cannot be made online.