DTAA

Residential Status of Individuals: Decoded

Income Tax - Residential status is no of doubt great relevance since the entire taxability under the Income Tax Act, 1961 revolves around the fact whether a person is a resident or a non-resident. However, in recent years, section 6 which prescribes the computation mechanism of residential status has undergone a significant change. An attempt has been...

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Can GAAR Override DTAA?

Income Tax - Well Friends, this seemingly short and pinpointed question (Can GAAR Override DTAA?), has in-seemingly long and abstract answer, in the absence of any specific legal precedent in this regard, in India, as of now. However, in this article, I am making an honest and sincere attempt to find a plausible, logical and well-reasoned answer to [&...

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TDS Deduction on Payment to Non Residents

Income Tax - Section 195 of the Act governs the TDS deduction on payments to non residents. It states that any person responsible for making payment outside India to a company or a non company is required to deduct TDS at the time of payment or credit, whichever is earlier at the rates in force. Let us understand […]...

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Role of DTAA and GAAR In Treaty Shopping

Income Tax - Role of Double Taxation Avoidance Agreement (DTAA) and General Anti-Avoidance Rules (GAAR.) In Treaty Shopping To understand treaty shopping we need to understand what a DTAA is, A double tax avoidance agreement is a tax treaty agreed by two states to ensure that a tax payer is not taxed twice for the same income, this […]...

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Some Facts Related To Applicability of DTAA

Income Tax - Section 6(1) of IT Act, 1961 offers two sets of parameters to determine whether a particular person is an Indian citizen or not. If the said individual falls under any one of the following criterias, he/she will be a resident of the country....

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Cabinet approves Agreement with Saint Vincent for Tax Information exchange

Income Tax - The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved anAgreement between the Republic of India and Saint Vincent and The Grenadines for the Exchange of Information and Assistance in Collection with respect to Taxes....

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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...

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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 ...

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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 ...

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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...

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TDS Rate on subcontracting charges paid to Chinese subsidiary will be 10% instead of 20% under Indo-China DTAA

Infosys Limited Vs DCIT (ITAT Bangalore) - Infosys Limited Vs DCIT (ITAT Bangalore) Conclusion: The applicable rate of TDS on subcontracting charges paid to Infosys China should be considered at 10% as per the India-China DTAA instead of 20% as per section 206AA. Held: Assessee was an Indian company, engaged in the business of development an...

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Provisions of DTAA override section 206AA of Income Tax Act

Infosys Limited Vs DCIT (ITAT Bangalore) - Infosys Limited Vs DCIT (ITAT Bangalore)  The relevant ground with regard to the above issue are grounds 9.1 to 9.3. The Special Bench of the Tribunal in the case of Nagarjuna Fertilizders and Chemicals Ltd. v. ACIT reported in (2017) 78 taxmann.com 264 had held if rate of tax applicable under DTAA...

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Performance Guarantee Commission cannot be reckoned as FTS

Dynamic Drilling & Services Pvt. Ltd. Vs ACIT (ITAT Delhi) - Dynamic Drilling & Services Pvt. Ltd. Vs ACIT (ITAT Delhi) The only issue before us is, whether tax credit can be allowed to the assessee company on the income offered to tax in India on the tax deducted by the Singapore Company from the Performance Guarantee Commission during the year under ass...

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User Development Fee collection charges paid by AAI to airlines is not income from operation of aircraft

Lufthansa German Airlines Vs DCIT (ITAT Delhi) - Lufthansa German Airlines Vs DCIT (ITAT Delhi) The question is whether the User Development Fee (UDF)  collection charges paid by AAI to the Lufthansa German Airlines (Assessee) is income derived from operation of aircraft not liable to tax in India as per Article 8 of DTAA between India and German...

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Payment for use of overall ICT Infrastructure is Royalty under India – Netherlands DTAA

Vanderlande Industries Private Limited Vs ACIT (ITAT Pune) - Vanderlande Industries Private Limited Vs ACIT (ITAT Pune) A cursory glance at the definition of the term `Royalties’ makes it patent that the hitherto content of para 4 of Article 12 comprising of copyright royalty cases only became subject matter of sub-para (a) of the amended para 4 of Article ...

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Clarification on Most-Favoured-Nation clause in Protocol to India’s DTAAs

Circular No. 3/2022-Income Tax - (03/02/2022) - The Central Board of Direct Taxes (CBDT) has received representations seeking clarity on the applicability of the MFN clause (particularly to dividend withholding rates) available in the Protocol to some of the DTAAs with OECD member States. India's DTAAs with countries, namely Slovenia, Colombia an...

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CBDT notifies Protocol amending DTAA with Kyrgyz Republic

Notification No. 135/2021-Income Tax [S.O. 5094(E)] - (08/12/2021) - Protocol amending the Agreement between the Government of the Republic of India and the Government of the Kyrgyz Republic for the Avoidance of Double Taxation and for the Prevention of Fiscal Evasion with respect to taxes on income signed at New Delhi on 13th April, 1999....

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CBDT notifies Provisions of DTAA between India & Iran

Notification No. 29/2021-Income-tax [S.O. 1442(E).] - (01/04/2021) - CBDT notifies Agreement Between The Government Of The Republic Of India And The Government Of The Islamic Republic Of Iran For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income. Notification No. 29/2021-Income-tax Dated 1st April, 2021. MINISTRY OF...

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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....

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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...

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Recent Posts in "DTAA"

TDS Rate on subcontracting charges paid to Chinese subsidiary will be 10% instead of 20% under Indo-China DTAA

Infosys Limited Vs DCIT (ITAT Bangalore)

Infosys Limited Vs DCIT (ITAT Bangalore) Conclusion: The applicable rate of TDS on subcontracting charges paid to Infosys China should be considered at 10% as per the India-China DTAA instead of 20% as per section 206AA. Held: Assessee was an Indian company, engaged in the business of development and export of computer software and relate...

Read More

Provisions of DTAA override section 206AA of Income Tax Act

Infosys Limited Vs DCIT (ITAT Bangalore)

Infosys Limited Vs DCIT (ITAT Bangalore)  The relevant ground with regard to the above issue are grounds 9.1 to 9.3. The Special Bench of the Tribunal in the case of Nagarjuna Fertilizders and Chemicals Ltd. v. ACIT reported in (2017) 78 taxmann.com 264 had held if rate of tax applicable under DTAA is lower than […]...

Read More

Performance Guarantee Commission cannot be reckoned as FTS

Dynamic Drilling & Services Pvt. Ltd. Vs ACIT (ITAT Delhi)

Dynamic Drilling & Services Pvt. Ltd. Vs ACIT (ITAT Delhi) The only issue before us is, whether tax credit can be allowed to the assessee company on the income offered to tax in India on the tax deducted by the Singapore Company from the Performance Guarantee Commission during the year under assessment. The main reason […]...

Read More

User Development Fee collection charges paid by AAI to airlines is not income from operation of aircraft

Lufthansa German Airlines Vs DCIT (ITAT Delhi)

Lufthansa German Airlines Vs DCIT (ITAT Delhi) The question is whether the User Development Fee (UDF)  collection charges paid by AAI to the Lufthansa German Airlines (Assessee) is income derived from operation of aircraft not liable to tax in India as per Article 8 of DTAA between India and Germany. As the effective management of [&hell...

Read More

Residential Status of Individuals: Decoded

Residential status is no of doubt great relevance since the entire taxability under the Income Tax Act, 1961 revolves around the fact whether a person is a resident or a non-resident. However, in recent years, section 6 which prescribes the computation mechanism of residential status has undergone a significant change. An attempt has been...

Read More
Posted Under: Income Tax |

Can GAAR Override DTAA?

Well Friends, this seemingly short and pinpointed question (Can GAAR Override DTAA?), has in-seemingly long and abstract answer, in the absence of any specific legal precedent in this regard, in India, as of now. However, in this article, I am making an honest and sincere attempt to find a plausible, logical and well-reasoned answer to [&...

Read More
Posted Under: Income Tax |

TDS Deduction on Payment to Non Residents

Section 195 of the Act governs the TDS deduction on payments to non residents. It states that any person responsible for making payment outside India to a company or a non company is required to deduct TDS at the time of payment or credit, whichever is earlier at the rates in force. Let us understand […]...

Read More
Posted Under: Income Tax |

Role of DTAA and GAAR In Treaty Shopping

Role of Double Taxation Avoidance Agreement (DTAA) and General Anti-Avoidance Rules (GAAR.) In Treaty Shopping To understand treaty shopping we need to understand what a DTAA is, A double tax avoidance agreement is a tax treaty agreed by two states to ensure that a tax payer is not taxed twice for the same income, this […]...

Read More
Posted Under: Income Tax |

Payment for use of overall ICT Infrastructure is Royalty under India – Netherlands DTAA

Vanderlande Industries Private Limited Vs ACIT (ITAT Pune)

Vanderlande Industries Private Limited Vs ACIT (ITAT Pune) A cursory glance at the definition of the term `Royalties’ makes it patent that the hitherto content of para 4 of Article 12 comprising of copyright royalty cases only became subject matter of sub-para (a) of the amended para 4 of Article 12. In addition, para 4(b) […]...

Read More

Some Facts Related To Applicability of DTAA

Section 6(1) of IT Act, 1961 offers two sets of parameters to determine whether a particular person is an Indian citizen or not. If the said individual falls under any one of the following criterias, he/she will be a resident of the country....

Read More
Posted Under: Income Tax |

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