DTAA

Protocol amending Agreement between India & China for avoidance of double taxation

Income Tax - By virtue of the powers vested under, Section 90 of the Income Tax Act, 1961 (the Act), India has entered into the Double Taxation Avoidance Agreement on 18th July, 1994 with China signed at New Delhi. The aim of the Agreement is to avoid double taxation and to prevent fiscal evasion with regard to the taxes on income with the help of exc...

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Does Subscription Fee fall under royalty?

Income Tax - With the increase in the complexity and growing enterprise landscape, a number of IT companies engage in creation of databases and soft wares and have also entered in the business of data collection and data systemisation. In return, these vendor companies charge annual subscription fee that can be defined as the amount of money the vendo...

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Fundamental of Base Erosion and Profit Shifting

Income Tax - Base Erosion and Profit Shifting (BEPS) has emerged as one of the most important challenges for governments all over the world. The Liberalization, Privatization and Globalization (LPG) has resulted; Free movement of Capital and Labour; Shift of manufacturing base from high cost to lower cost locations; Gradual removal of the trade barri...

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Deemed accrual of gift made to a person outside India by Resident

Income Tax - Section 9 of the Act relates to Income deemed to accrue or arise in India. Under the Act, non –residents are taxable in India in respect of income that accrues or arises in India or is received in India or is deemed to accrue or arise in India or is deemed to be received in […]...

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India-US agreement for Country by Country reporting

Income Tax - India and United States of America signed an inter- governmental agreement for exchange of country- by –country (CbC) reports on March 27, 2019. This enabled both the countries to exchange CbC reports filed by the ultimate parent organizations of multinationals in respect of jurisdictions, pertaining to the years commencing on or after ...

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Protocol amending India-China DTAA

Income Tax - The Government of the Republic of India and the Government of the People’s Republic of China have amended the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income, by signing a Protocol on 26/11/2018....

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Cabinet approves signing & ratifying agreement with Brunei Darussalam for exchange of information

Income Tax - Cabinet approves signing and ratification of Agreement between India and Brunei Darussalam for the Exchange of Information and Assistance in Collection with respect to Taxes ...

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India and Kazakhstan sign Protocol to amend DTAC

Income Tax - The Protocol provides internationally accepted standards for effective exchange of information on tax matters. Further, the information received from Kazakhstan for tax purposes can be shared with other law enforcement agencies with the authorisation of the competent authority of Kazakhstan and vice versa....

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Cabinet approves revision of DTAA between India and Qatar

Income Tax - Cabinet approves revision of the Agreement between India and Qatar for the avoidance of double taxationand for the prevention of fiscal evasion with respect to taxes on income The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for revision of the Agreement betweenIndia and Qatar for the avoidance of doub...

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India & Hong Kong sign Double Taxation Avoidance Agreement

Income Tax - On 19.03.2018, Government of India and the Hong Kong Special Administrative Region (HKSAR) of People’s Republic of China have signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income....

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Payment for ‘bandwith services’ not assessable as ‘royalty’ if assessee has no access to any equipment

DCIT Vs M/s Reliance Jio Infocomm Ltd. (ITAT Mumbai) - As a matter of fact, all infrastructure and process required for provision of bandwith services was always used and under the control of RJIPL, and the same was never given either to the assessee or to any other person availing the said services. We are persuaded to subscribe to the observations of ...

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DTAA cannot be overridden by a unilateral legislative amendment by one Country

CIT (IT)­ Vs Reliance Infocomm Ltd (Bombay High Court) - Mere amendments in the Act would not over­ride the provisions of Double Tax Avoidance Agreement (DTAA). It was held that: on a final note, India’s change in position to the OECD Commentary cannot be a fact that influences the interpretation of the words defining royalty as they stand today....

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Software purchased across the counter as shrink proof software is not akin to royalty

Opus Software Solutions Pvt. Ltd. Vs ACIT (ITAT Pune) - It was held that where the software is purchased across the counter as shrink proof software, then it is not akin to royalty both under the Income Tax Act or the DTAA. The Tribunal held that since the definition of ‘royalty’ has not been amended under DTAA,...

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Payment for fabric testing would not constitute fee for technical services

Rajesh Kumar Saroj Vs JCIT (ITAT Delhi) - Indo-UK DTAA must be read as forming part of Indo-Spain DTAA as well and, therefore, the payment made by the assessee to the Spanish company for fabric testing would not constitute fee for technical services and consequently, section 195 of the Act has no application to such a receipt....

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Education cess is nothing but an additional surcharge & part of taxes

R.A.K. Ceramics, UAE Vs DCIT (ITAT Hyderabad) - Article 2(1) of the India-UAE DTAA provides that the taxes covered shall include tax and surcharge thereon. Education cess is nothing but an additional surcharge & is also covered by the definition of taxes....

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Govt notifies Multilateral Convention to implement Measures to Prevent BEPS

Notification No. 57/2019-Income Tax [S.O. 2887(E)] - (09/08/2019) - Whereas the Multilateral Convention to Implement Tax Treaty related Measures to Prevent Base Erosion and Profit Shifting (hereinafter referred to as the “the said Convention”) was signed by India at Paris, France on the 7th day of June, 2017;...

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CBDT notifies Revised India -China DTAA Protocol

Notification No. 54/2019-Income Tax - (17/07/2019) - Protocol amending the Agreement between the Government of the Republic of India and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and the Protocol thereto Signed at New Delhi on 18th July, ...

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India ratifies Multilateral Convention to Prevent BEPS

NA - (02/07/2019) - India has ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), which was signed by the Hon’ble Finance Minister at Paris on 7th June, 2017 on behalf of India, alongwith representatives of more than 65 countries....

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Agreement for exchange of information with Marshall Islands notified

Notification No. 40/2019 - (21/05/2019) - Government of the Republic of India and the Government of Republic of the Marshall Islands, desiring to facilitate the exchange of information with respect to taxes have agreed as follows:...

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CBDT notifies India-USA agreement on exchange of Country-by-Country reports

Notification No. 37/2019 [S.O.1653(E)] - (25/04/2019) - S.O.1653(E).—Whereas an Inter-Governmental Agreement for Exchange of Country-by-Country Reports was entered into by the Government of the Republic of India and the Government of the United States of America, which was signed at New Delhi on 27th day of March, 2019 (hereinafter referred to as the...

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Recent Posts in "DTAA"

Govt notifies Multilateral Convention to implement Measures to Prevent BEPS

Notification No. 57/2019-Income Tax [S.O. 2887(E)] (09/08/2019)

Whereas the Multilateral Convention to Implement Tax Treaty related Measures to Prevent Base Erosion and Profit Shifting (hereinafter referred to as the “the said Convention”) was signed by India at Paris, France on the 7th day of June, 2017;...

Read More

Protocol amending Agreement between India & China for avoidance of double taxation

By virtue of the powers vested under, Section 90 of the Income Tax Act, 1961 (the Act), India has entered into the Double Taxation Avoidance Agreement on 18th July, 1994 with China signed at New Delhi. The aim of the Agreement is to avoid double taxation and to prevent fiscal evasion with regard to the taxes on income with the help of exc...

Read More
Posted Under: Income Tax |

Does Subscription Fee fall under royalty?

With the increase in the complexity and growing enterprise landscape, a number of IT companies engage in creation of databases and soft wares and have also entered in the business of data collection and data systemisation. In return, these vendor companies charge annual subscription fee that can be defined as the amount of money the vendo...

Read More
Posted Under: Income Tax |

CBDT notifies Revised India -China DTAA Protocol

Notification No. 54/2019-Income Tax (17/07/2019)

Protocol amending the Agreement between the Government of the Republic of India and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and the Protocol thereto Signed at New Delhi on 18th July, 1994. MINISTRY OF FINANCE (Department [&...

Read More

Fundamental of Base Erosion and Profit Shifting

Base Erosion and Profit Shifting (BEPS) has emerged as one of the most important challenges for governments all over the world. The Liberalization, Privatization and Globalization (LPG) has resulted; Free movement of Capital and Labour; Shift of manufacturing base from high cost to lower cost locations; Gradual removal of the trade barri...

Read More
Posted Under: Income Tax |

Deemed accrual of gift made to a person outside India by Resident

Section 9 of the Act relates to Income deemed to accrue or arise in India. Under the Act, non –residents are taxable in India in respect of income that accrues or arises in India or is received in India or is deemed to accrue or arise in India or is deemed to be received in […]...

Read More
Posted Under: Income Tax |

India ratifies Multilateral Convention to Prevent BEPS

NA (02/07/2019)

India has ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), which was signed by the Hon’ble Finance Minister at Paris on 7th June, 2017 on behalf of India, alongwith representatives of more than 65 countries....

Read More

Payment for ‘bandwith services’ not assessable as ‘royalty’ if assessee has no access to any equipment

DCIT Vs M/s Reliance Jio Infocomm Ltd. (ITAT Mumbai)

As a matter of fact, all infrastructure and process required for provision of bandwith services was always used and under the control of RJIPL, and the same was never given either to the assessee or to any other person availing the said services. We are persuaded to subscribe to the observations of the CIT(A) that as the process involved ...

Read More

DTAA cannot be overridden by a unilateral legislative amendment by one Country

CIT (IT)­ Vs Reliance Infocomm Ltd (Bombay High Court)

Mere amendments in the Act would not over­ride the provisions of Double Tax Avoidance Agreement (DTAA). It was held that: on a final note, India’s change in position to the OECD Commentary cannot be a fact that influences the interpretation of the words defining royalty as they stand today....

Read More

Software purchased across the counter as shrink proof software is not akin to royalty

Opus Software Solutions Pvt. Ltd. Vs ACIT (ITAT Pune)

It was held that where the software is purchased across the counter as shrink proof software, then it is not akin to royalty both under the Income Tax Act or the DTAA. The Tribunal held that since the definition of ‘royalty’ has not been amended under DTAA,...

Read More
Posted Under: Income Tax |

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