Triangular cases
Saturday International Tax Gyan!! (SITG – 224) #taxmadeeasy #taxinpic Understanding the situation of triangular cases in case of Tax treaties
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Tax Gyan
TRC Benefit cannot be denied for indirect transfer of capital asset
Saturday International Tax Gyan!! (SITG – 223) #taxmadeeasy #taxinpic TRC benefit and tax exemption under the grandfathering clause cannot be denied under the India- Mauritius DTAA in respect capital gains from ‘indirect transfers’ of shares of Singapore company.
Marketing services is not royalty or FTS
Saturday International Tax Gyan!! (SITG – 222) #taxmadeeasy #taxinpic Marketing services such as generating customer leads, using customer data base, market research and analysis in which technical knowledge is not shared can not be considered as royalty or FTS as per India-USA DTAA. SLP by revenue was rejected by Hon’ble SC.
Access to database is not royalty
Saturday International Tax Gyan!! (SITG – 221) #taxmadeeasy #taxinpic Offering access to online courses and degrees as an aggregation service, provider can not be brought to tax as FIS or royalty under article 12 of India-USA DTAA – Coursera Inc. V. ACIT
When tax is borne by deductor the amount payable needs to be grossed up
Saturday International Tax Gyan!! (SITG – 220) #taxmadeeasy #taxinpic DTAA does not provide process/ mechanism for calculation of income it only provides tax rate and calculation mechanism needs to be derived from domestic tax law.
Important updated from Finance Act, 2024 for non-resident
Saturday International Tax Gyan!! (SITG – 219) #taxmadeeasy #taxinpic Some important amendments introduced by Finance Act, 2024 includes changes in tax rate for foreign companies, change in capital gain tax, Indexation benefit not available.
Where rights in shares received outside India such income is taxable outside India
Saturday International Tax Gyan!! (SITG – 218) #taxmadeeasy #taxinpic Non- Resident acquired the right or interest in the CCPS of Indian companies and subsequently transfer of rights will not attract capital gain in India as citus outside India
Salary paid to non-resident for service outside India will not be taxable in India
Saturday International Tax Gyan!! (SITG – 217) #taxmadeeasy #taxinpic Salary received by non-resident from foreign employer for working in International waters will not be taxable in India.
Payment for stall rent outside India is not liable to tax in India
Saturday International Tax Gyan!! (SITG – 216) #taxmadeeasy #taxinpic Payment for rent of stall outside India is not liable to TDS where services are provided outside India.
Receipts for marketing, reservation fees will not be taxable as Royalty or FIS
Saturday International Tax Gyan!! (SITG – 215) #taxmadeeasy #taxinpic Receipts from reservation fees, marketing fees and loyalty program could not be brought to tax in India as Royalty income under India Singapore DTAA.