international taxation

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...

Read More

Taxation of Income from Cross-border Interest

Income Tax - Let us understand the concept of Interest in the context of cross-border taxation with the help of an example. When an Indian Company borrows money by way of Loan from a person resident of Germany, the Indian Company will pay Interest at agreed rate to such Non-resident. Now, the question arises, which country gets the right to tax such I...

Read More

10 Major Changes in International Taxation- Union Budget 2019

Income Tax - Union Budget 2019 Highlights – International Taxation 1. Relaxation in conditions of special taxation regime for offshore funds [Section 9A] In case of the investment fund incorporated or registered outside India, which satisfies certain conditions as provided in subsection 3 of section 9A of the IT Act, the fund management activity...

Read More

Budget 2019: International Tax, Transfer Pricing & Non-Resident Taxation

Income Tax - Article analyses Budget Proposals by the Finance Act (No. 2), 2019 – Relevant for International Tax, Transfer Pricing & Non-Resident which includes Amendment of section 9 – Gift made to person outside India (non-resident), Amendment of section 9A – Providing relaxation in condition for offshore funds, Amendment of sectio...

Read More

Solving The Dilemma of Dual Residence

Income Tax - This paper aims at analysing the tie-breaker test in determining residence in the OECD as prescribed under Article 4(3) and how it is evolved. It analyses the 2017 update to the OECD which prescribes the Mutual Agreement Procedure (MAP). The paper finally provides a method of properly implementing MAP and how it can be effectively done so...

Read More

Mauritius Leaks again revealed devastating impact of tax avoidance

Income Tax - The Mauritius Leaks have once again revealed the devastating impact of tax avoidance. ICRICT calls for multilateral accord to overhaul the international tax system, the end of tax havens, the adoption of a minimum global tax and the creation of a Global Asset Registry...

Read More

Ratification of Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting

Income Tax - The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved theratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI)...

Read More

Signing of CbC Report Exchange agreement between India & USA

Income Tax - India and the United States of America have today, the 27th March, 2019, signed an Inter-Governmental Agreement for Exchange of Country-by-Country (CbC) Reports. ...

Read More

Proposed Signing of Bilateral Agreement for Exchange of CBCR between India and USA

Income Tax - Dear Reader, The Ministry of Finance, has issued a Press release dated 15 March, 2019 stating that a bilateral agreement has been finalized between India and the United States of America (USA) for the exchange of Country-by-Country Reports (CbCR). The proposed agreement would apply retrospectively for the exchange of CbCR from the financi...

Read More

Taxation of Non-Residents

Income Tax - ICAI released an e-book on Taxation of Non-Residents  based on the law as amended by the Finance Act, 2018. The book contains following topics- Chapter 1. Residential Status Chapter 2. Income Deemed to Accrue or Arise in India Chapter 3. Income not to be included in the total income Chapter 4. Presumptive Taxation Chapter 5. […]...

Read More

Amount paid to Foreign Lawyer to represent in Foreign Court was legal fees not FTS

ONGC as representative assessee of Dewey & Le Boeuf International Company LLC Vs DCIT (International Taxation) (ITAT Delhi) - Amount paid to foreign lawyer by assessee for representing its case before foreign court was not taxable as fees for technical services (FTS) in India as legal services could not be treated as FTS as it was a professional services which was outside the scope of Section 9(1)(vii)....

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

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....

Read More

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....

Read More

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, ...

Read More

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

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:...

Read More

Amendment of Rules for Profit attribution to PE: CBDT invites comment

F. No. 500/33/2017-FTD.I - (18/04/2019) - Public Consultation on the proposal for amendment of Rules for Profit attribution to Permanent (PE) Establishment invited by CBDT. Under Article 7 in the Indian treaties, profits are to be attributed to the PE as if it were a distinct and separate entity on the basis of the accounts of the PE and wh...

Read More

CBDT Extends CbCR deadline for constituent entities having parent entity in USA

Circular No. 7/2019-Income Tax - (08/04/2019) - The Circular has extended the due date to 30 April 2019, for furnishing Country-by-Country Reports (CbCRs), in respect of reporting accounting years ending up to 29 April 2018. The earlier extended due date for such filing was 31 March 2019. This is applicable only to those constituent entities, who...

Read More

Recent Posts in "international taxation"

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 |

Taxation of Income from Cross-border Interest

Let us understand the concept of Interest in the context of cross-border taxation with the help of an example. When an Indian Company borrows money by way of Loan from a person resident of Germany, the Indian Company will pay Interest at agreed rate to such Non-resident. Now, the question arises, which country gets the right to tax such I...

Read More
Posted Under: Income Tax |

Mauritius Leaks again revealed devastating impact of tax avoidance

The Mauritius Leaks have once again revealed the devastating impact of tax avoidance. ICRICT calls for multilateral accord to overhaul the international tax system, the end of tax havens, the adoption of a minimum global tax and the creation of a Global Asset Registry...

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

10 Major Changes in International Taxation- Union Budget 2019

Union Budget 2019 Highlights – International Taxation 1. Relaxation in conditions of special taxation regime for offshore funds [Section 9A] In case of the investment fund incorporated or registered outside India, which satisfies certain conditions as provided in subsection 3 of section 9A of the IT Act, the fund management activity...

Read More
Posted Under: Income Tax | ,

Budget 2019: International Tax, Transfer Pricing & Non-Resident Taxation

Article analyses Budget Proposals by the Finance Act (No. 2), 2019 – Relevant for International Tax, Transfer Pricing & Non-Resident which includes Amendment of section 9 – Gift made to person outside India (non-resident), Amendment of section 9A – Providing relaxation in condition for offshore funds, Amendment of sectio...

Read More
Posted Under: Income Tax | ,

Amount paid to Foreign Lawyer to represent in Foreign Court was legal fees not FTS

ONGC as representative assessee of Dewey & Le Boeuf International Company LLC Vs DCIT (International Taxation) (ITAT Delhi)

Amount paid to foreign lawyer by assessee for representing its case before foreign court was not taxable as fees for technical services (FTS) in India as legal services could not be treated as FTS as it was a professional services which was outside the scope of Section 9(1)(vii)....

Read More

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

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

Solving The Dilemma of Dual Residence

This paper aims at analysing the tie-breaker test in determining residence in the OECD as prescribed under Article 4(3) and how it is evolved. It analyses the 2017 update to the OECD which prescribes the Mutual Agreement Procedure (MAP). The paper finally provides a method of properly implementing MAP and how it can be effectively done so...

Read More
Posted Under: Income Tax |

Browse All Categories

CA, CS, CMA (4,232)
Company Law (4,945)
Custom Duty (7,351)
DGFT (3,974)
Excise Duty (4,229)
Fema / RBI (3,812)
Finance (3,989)
Income Tax (30,543)
SEBI (3,180)
Service Tax (3,468)