DTAA

Interpretation of double tax avoidance agreements

Income Tax - The Central Government has signed with several countries, including the U.S. "Agreements for the Avoidance of Double Taxation". By this, I am given to understand that in the case of an Indian who is a perm anent resident in the U.S. (green card holder) but who may have taxable income in India, as also in the U.S., double taxation is sough...

Read More

Understanding DTAA with Case Laws

Income Tax - There are two kinds of DTAA. Comprehensive Agreements & Limited Agreements. Comprehensive Agreements scope is to addressing all source of income whereas Limited Agreements scope to cover only. (a) Income from Operation of Aircrafts & Ships (b) Estates (c) Inheritance & (d) Gifts. Currently there are 90 Comprehensive Agreements & 13 L...

Read More

Tax Treaties and Investments Made Outside India

Income Tax - Nations around the world engage in many kinds of agreements related to financial matters. Such treaties and agreements prove to be beneficial for the residents (individuals as well as business entities) of those countries who are active parties in the agreement. They can provide a tax credit, tax exemptions, and an overall cut in the [&he...

Read More

Sale of software- Transfer of copyright or transfer of a copyrighted article?

Income Tax - Since past two-decade, software industry has undergone tremendous technological changes and accordingly such industry has emerged to be one of the fastest growing industry worldwide. India being a developing country provides ample opportunities for Multi-national Enterprises (MNEs) to expand their business in India. The technological adva...

Read More

Relief under Section 90/91 of Income Tax Act, 1961

Income Tax - Relief Under section 90 if the country in which tax is paid has entered double taxation avoidance agreement with the Government of India. Relief Under section 91 if the country in which tax is paid has not entered into any agreement with the Government of India....

Read More

CBDT releases MLI synthesised text for India-Czechoslovak Socialist Republic tax treaty

Income Tax - CBDT has released the synthesised text for India-Slovak Republic tax treaty. It represents their shared understanding of the modifications made to the Agreement by MLI. SLOVAK REPUBLIC AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH – SLOVAK REPUBLIC Whereas a Agreement between the Government of th...

Read More

CBDT releases MLI synthesised text for India-Poland tax treaty

Income Tax - CBDT has released the synthesised text for India-Poland tax treaty. It represents their shared understanding of the modifications made to the Agreement by MLI. SYNTHESISED TEXT OF THE MLI AND THE CONVENTION BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE REPUBLIC OF POLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND ...

Read More

CBDT releases MLI synthesised text for India-Australia tax treaty

Income Tax - CBDT has released the synthesised text for India-Australia tax treaty. It represents their shared understanding of the modifications made to the Agreement by MLI. AUSTRALIA SYNTHESISED TEXT  OF THE MULTILATERAL CONVENTION TO IMPLEMENT TAXT REATY RELATED MEASURES TO PREVENT BASE EROSION AND PROFIT SHIFTING (MLI) AND THE AGREEMENT BETWEEN ...

Read More

CBDT releases MLI synthesised text for India-Singapore tax treaty

Income Tax - CBDT has released the synthesised text for India-Singapore tax treaty. It represents their shared understanding of the modifications made to the Agreement by MLI. SYNTHESISED TEXT OF THE MULTILATERAL CONVENTION TO IMPLEMENT TAX TREATY RELATED MEASURES TO PREVENT BASE EROSION AND PROFIT SHIFTING (MLI) AND THE AGREEMENT BETWEEN THE GOVERNME...

Read More

CBDT releases MLI synthesised text for India-Austria tax treaty

Income Tax - CBDT has released the synthesised text for India-Austria tax treaty. It represents their shared understanding of the modifications made to the Agreement by MLI. AUSTRIA SYNTHESISED TEXT OF THE MULTILATERAL CONVENTION TO IMPLEMENT TAX TREATY RELATED MEASURES TO PREVENT BASE EROSION AND PROFIT SHIFTING (MLI) AND THE CONVENTION BETWEEN THE G...

Read More

Tax on Interest Income & commitment fees earned by DZ Bank from its Indian clients

DZ Bank AG – India Representative Office Vs DCIT (ITAT Mumbai) - DZ Bank AG – India Representative Office Vs DCIT (ITAT Mumbai) Interest Income & commitment fees earned by DZ Bank from its Indian clients could be taxed under article 11 instead of article 7 of Indian Branch under Tax Treaty: Conclusion: Interest income and commitment fees earned by DZ Bank f...

Read More

Data Processing Cost reimbursement did not constitute ‘Royalty’

DCIT Vs KBC NV (ITAT Mumbai) - DCIT Vs KBC NV (ITAT Mumbai) The issue involved in this ground of appeal i.e., data processing cost paid to head office is in the nature of royalty as per Clause-3, Explanation 1 to Section 9(1)(vi) of the Income Tax Act, 1961 which is liable for withholding tax u/s.194J of the Income Tax Act, 1961 ...

Read More

Foreign tax credit available even on income not subjected to tax in India except foreign tax paid in Finland & Canada

Tata Consultancy Services Ltd. Vs Addl. CIT (ITAT Mumbai) - Tata Consultancy Services Ltd. Vs Addl. CIT (ITAT Mumbai) As could be seen, while the Assessing Officer has disallowed assessee’s claim of foreign tax credit in respect of income exempt under section 10A/10AA of the Act on the reasoning that only such income which is subjected to tax in both t...

Read More

Income from time charter services rendered by vessel cannot be treated as ‘royalty‘

Smit Singapore Pte Ltd. Vs DCIT (ITAT Mumbai) - Smit Singapore Pte Ltd. Vs DCIT (ITAT Mumbai) Assessee had received charges on account of time charter services rendered by its vessel ‘Smit Borneo‘ along with the crew to Leighton India Contractor Pvt. Ltd., and not for allowing the latter the ‘use‘ or ‘right to use‘ of indu...

Read More

Intermediary services not amount to FTS & not taxable under India-Sweden DTAA

Bombardier Transportation Sweden AB Vs DCIT (ITAT Delhi) - Bombardier Transportation Sweden AB Vs DCIT (ITAT Delhi) Conclusion: Payment of consideration would be regarded as ‘fee for technical/included services’ only if the twin test of rendering services and making technical knowledge available at the same time was satisfied. Intermediary servi...

Read More

Mutual Agreement Procedure (MAP) Guidance by CBDT

MAP GUIDANCE/2020 - (07/08/2020) - Though erstwhile rules 44G and 44H were in existence for a number of years, detailed information regarding MAP processes and guidance on issues related to such processes were not available in a comprehensive and consolidated manner....

Read More

Procedure for Amendment of Mutual Agreement Procedure notified

Notification No. 23/20020-Income Tax [G.S.R. 282(E)] - (06/05/2020) - ​Amendment of Mutual Agreement Procedure (MAP) procedure laid down in the Income-tax Rules, 1962 CBDT amends Rule 44G and Form 34F- Application to give effect to DTAA MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 23/20020-Income Tax New Delhi, the 6th...

Read More

CBDT notifies Protocol Between India And Austria

Notification No. 22/2020-Income Tax [S.O. 1370(E)] - (24/04/2020) - Protocol Between The Government Of The Republic Of India And The Government Of The Republic Of Austria Amending The Convention For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income, Which Was Signed At Vienna On 8 November, 1999...

Read More

Agreement between India & Brunei for Exchange of Information notified

NA - (17/03/2020) - The Agreement between the Government of the Republic of India and the Government of Brunei Darussalam for the exchange of information and assistance in collection with respect of taxes (hereinafter referred to as the Agreement), was signed in New Delhi, India on 28th of February, 2019. The Agreement...

Read More

CBDT notifies DTAA with Brunei Darussalam

Notification No. 14/2020-Income tax [S.O. 1009(E)] - (04/03/2020) - MINISTRY OF FINANCE (Department of Revenue) Notification No. 14/2020  New Delhi, the 4th March, 2020 S.O. 1009(E).—Whereas, an Agreement between the Government of the Republic of India and the Government of Brunei Darussalam for the exchange of information and assistance in collection with respec...

Read More

DTAA’s Popular Posts

Recent Posts in "DTAA"

Tax on Interest Income & commitment fees earned by DZ Bank from its Indian clients

DZ Bank AG – India Representative Office Vs DCIT (ITAT Mumbai)

DZ Bank AG – India Representative Office Vs DCIT (ITAT Mumbai) Interest Income & commitment fees earned by DZ Bank from its Indian clients could be taxed under article 11 instead of article 7 of Indian Branch under Tax Treaty: Conclusion: Interest income and commitment fees earned by DZ Bank from its Indian clients could […]...

Read More

Data Processing Cost reimbursement did not constitute ‘Royalty’

DCIT Vs KBC NV (ITAT Mumbai)

DCIT Vs KBC NV (ITAT Mumbai) The issue involved in this ground of appeal i.e., data processing cost paid to head office is in the nature of royalty as per Clause-3, Explanation 1 to Section 9(1)(vi) of the Income Tax Act, 1961 which is liable for withholding tax u/s.194J of the Income Tax Act, 1961 […]...

Read More

Foreign tax credit available even on income not subjected to tax in India except foreign tax paid in Finland & Canada

Tata Consultancy Services Ltd. Vs Addl. CIT (ITAT Mumbai)

Tata Consultancy Services Ltd. Vs Addl. CIT (ITAT Mumbai) As could be seen, while the Assessing Officer has disallowed assessee’s claim of foreign tax credit in respect of income exempt under section 10A/10AA of the Act on the reasoning that only such income which is subjected to tax in both the countries would qualify for […...

Read More

Income from time charter services rendered by vessel cannot be treated as ‘royalty‘

Smit Singapore Pte Ltd. Vs DCIT (ITAT Mumbai)

Smit Singapore Pte Ltd. Vs DCIT (ITAT Mumbai) Assessee had received charges on account of time charter services rendered by its vessel ‘Smit Borneo‘ along with the crew to Leighton India Contractor Pvt. Ltd., and not for allowing the latter the ‘use‘ or ‘right to use‘ of industrial, commercial, or scientific equipm...

Read More

Intermediary services not amount to FTS & not taxable under India-Sweden DTAA

Bombardier Transportation Sweden AB Vs DCIT (ITAT Delhi)

Bombardier Transportation Sweden AB Vs DCIT (ITAT Delhi) Conclusion: Payment of consideration would be regarded as ‘fee for technical/included services’ only if the twin test of rendering services and making technical knowledge available at the same time was satisfied. Intermediary services rendered by assessee did not make av...

Read More

Modification due to Notification has Effect of Deleting Old Rule & Making New Rule Operative

DIT Vs Autodesk Asia Pvt Ltd (Karnataka High Court)

whether the Tribunal was correct in holding that the assessee is liable to be taxed at 10% in view of replacement of 15% with 10% of tax in Article 12 of the DTAA without taking into consideration that the modification of rate of tax by way of notification?...

Read More

Interpretation of double tax avoidance agreements

The Central Government has signed with several countries, including the U.S. "Agreements for the Avoidance of Double Taxation". By this, I am given to understand that in the case of an Indian who is a perm anent resident in the U.S. (green card holder) but who may have taxable income in India, as also in the U.S., double taxation is sough...

Read More
Posted Under: Income Tax |

No Addition on Royalty for Database Access License as per Indo-Swiss Tax Treaty

IMS AG Vs DCIT (ITAT Mumbai)

The issue under consideration is whether AO is correct in making addition for royalty on account of alleged royalty taxable under section 9 (l)(vi) of the Income Tax Act, 1961 read with Article 12(3) of India Switzerland Double Taxation Avoidance Agreement (DTAA)?...

Read More

Income from bandwidth services provided outside India cannot be taxed as ‘Royalty’ under India-Singapore DTAA

Telstra Singapore Pte. Ltd. Vs DCIT (International Taxation) (ITAT Delhi)

Income received on providing bandwidth services outside India was not taxable as ‘Royalty’ under India-Singapore Double Taxation Avoidance Agreement (DTAA) as mere receipt of service using equipment under the control, possession and operation of service provider would only be considered as transaction of a service and not to 'use or r...

Read More

Income for Sale of Specialized Software Maintenance & Support Services is Not a Royalty

Trimble Solutions Corporation Vs DCIT (International Taxation) (ITAT Mumbai)

The issue under consideration is whether the Income received for sale of specialized software and maintenance and support services is considered as 'Royalty' as per India-Finland Tax Treaty?...

Read More

Browse All Categories

CA, CS, CMA (5,112)
Company Law (6,793)
Custom Duty (8,161)
DGFT (4,425)
Excise Duty (4,420)
Fema / RBI (4,498)
Finance (4,725)
Income Tax (35,475)
SEBI (3,793)
Service Tax (3,646)

Search Posts by Date

January 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031