Saturday International Tax Gyan
Knowledge comes, but wisdom lingers.
Mere investment in India cannot be a base to deem that non-resident has any income in India.
Saturday International Tax Gyan!! (SITG – 250) #taxmadeeasy #taxinpic ANILESH AHUJA v. Union of India & Anr. – W.P.(C) 3409/2023 – Delhi High court Mere
Testing services for diamond certification do not fall under the scope of Fees for Technical Services (FTS).
Saturday International Tax Gyan!! (SITG – 249) #taxmadeeasy #taxinpic Commissioner of Income-tax (IT&TP) v. Star Rays [2025] 171 taxmann.com 733 (SC) Testing services for diamond
Loss from taxable asset cannot be set off against taxable gain.
Saturday International Tax Gyan!! (SITG – 248) #taxmadeeasy #taxinpic TVF Fund Ltd. Vs. Deputy Commissioner of Income-tax, International Tax [2025] 171 taxmann.com 349 (Mumbai –
Fees paid for arranging loan cannot be considered as royalty or fees for technical services
Saturday International Tax Gyan!! (SITG – 247) #taxmadeeasy #taxinpic ITO (International Taxation) Vs. Hartaj Sewa Singh [2025] 171 taxmann.com 18 (Kolkata – Trib.)[30-01-2025] Fees paid
Taxability under Residual article of DTAA
Saturday International Tax Gyan!! (SITG No. 246) #taxmadeeasy #taxinpic Part- 6 of a new series “Back to Basic Principles” wherein we shall discuss some basic
Retrospective amendment in the act cannot be read into DTAA
Saturday International Tax Gyan!! (SITG No. 245) #taxmadeeasy #taxinpic Part- 5 of a new series “Back to Basic Principles” wherein we shall discuss some basic
Treaty to be read as a whole and not in isolation
Saturday International Tax Gyan!! (SITG No. 244) #taxmadeeasy #taxinpic Part- 4 of a new series “Back to Basic Principles” wherein we shall discuss some basic
Guidance on the Principal Purpose Test (PPT) under India’s Double Taxation Avoidance Agreements (DTAAs)
Saturday International Tax Gyan!! (SITG No. 243) #taxmadeeasy #taxinpic The PPT is a general anti-avoidance rule applied under DTAAs. PPT in India’s tax treaties states:
Different streams of income can have different tax treatment
Saturday International Tax Gyan!! (SITG No. 242) #taxmadeeasy #taxinpic Part 3 – Taxpayer can opt for taxability under Act or DTAA, whichever is more beneficial
If two views possible, view which is favourable to taxpayer should be adopted
Saturday International Tax Gyan!! (SITG No. 241) #taxmadeeasy #taxinpic Part- 2 of a new series “Back to Basic Principles” wherein we shall discuss some basic
Right to Choose Between DTAA and IT Act- JSCO| SITG
Saturday International Tax Gyan!! (SITG No. 240) #taxmadeeasy #taxinpic As per the established principle, in cases where a DTAA is in force, the provisions of
PE must be treated as a distinct and independent entity for taxation purposes- JSCO | SITG
Saturday International Tax Gyan!! (SITG No. 239) #taxmadeeasy #taxinpic PE must be treated as a distinct and independent entity for taxation purposes. Profits attributable to
Saturday International Tax Gyan!! (SITG – 238) #taxmadeeasy #taxinpic
Tungsten Network Ltd Vs DCIT ITA Nos. 2237 & 2238/Del/2024 [18-12-2024] Payment for cloud-based and digital service providers will be covered under definition of “technical
Update on MFN Clause with Switzerland
Saturday International Tax Gyan!! (SITG – 237) #taxmadeeasy #taxinpic “Switzerland has revoked its unilateral statement and now both the countries share the same understanding about
Warehouse payment will not be considered as payment for FTS under section 9(1)(vii)
Saturday International Tax Gyan!! (SITG – 236) #taxmadeeasy #taxinpic Avtec Ltd. vs ACIT [2024] 168 taxmann.com 692 (Delhi – Trib.) [29.11.2024] “Payments for warehousing services
FTC credit not dependent on filing of tax return in foreign jurisdiction
Saturday International Tax Gyan!! (SITG – 235) #taxmadeeasy #taxinpic Amarchand Mangladas & Suresh A Shroff & Co. vs ACIT [2024] ITA No.852/M/2024 [30-09-2024] Filing tax
Capital Gain from mutual fund in case of UAE resident not taxable in India
Saturday International Tax Gyan!! (SITG – 234) #taxmadeeasy #taxinpic Saket Kanoi Vs DCIT [2024] 168 taxmann.com 418 (Delhi – Trib.)[23-10-2024] UAE resident earning capital gain
Salary earned outside India by non-resident is not taxable in India
Saturday International Tax Gyan!! (SITG – 233) #taxmadeeasy #taxinpic Sanjay Ajit vs Income-tax Officer (International Taxation) [2024] 166 taxmann.com 629 (Chennai – Trib.) Salary earned
Non-exclusive distribution rights will not be considered as Royalty
Saturday International Tax Gyan!! (SITG – 232) #taxmadeeasy #taxinpic Distribution of television channels will not give rise to transfer of copyright in favour of Indian
Tie Breaker Rule – Stay of immediate nuclear family is important
Saturday International Tax Gyan!! (SITG – 231) #taxmadeeasy #taxinpic While testing tie breaker rule, the economic interest will be where assessee is involved in day
Shareholding of ultimate holding to be seen in Indirect transfer
Saturday International Tax Gyan!! (SITG – 230) #taxmadeeasy #taxinpic In case of Indirect transfer of shares taxability in India is to be seen based on
Part 4 of Series on Article 8 – Profit arise from shipping and Air Transport
Saturday International Tax Gyan!! (SITG – 229) #taxmadeeasy #taxinpic Limitation of Relief (LOR) in DTAA and various countries’ DTAA related to Article 8
Part 3 of Series on Article 8 – Profit arise from shipping and Air Transport
Saturday International Tax Gyan!! (SITG – 228) #taxmadeeasy #taxinpic Understanding Article 8 of OECD and UN Model conventions for the taxability on profit from operation
Part 2 of Series on Article 8 – Profit arise from shipping and Air Transport
Saturday International Tax Gyan!! (SITG – 227) #taxmadeeasy #taxinpic Provisions of Income Tax Act related to taxation on profit arise from shipping and Air Transport
Part 1 of Series on Article 8 – Profit arise from shipping and Air Transport
Saturday International Tax Gyan!! (SITG – 226) #taxmadeeasy #taxinpic Basic Terminologies used in the Article 8 for understanding the taxability on profit from operation of
Fiscally Transparent Entity Can Be A Tax Resident In The Country It Is Establish
Saturday International Tax Gyan!! (SITG – 225) #taxmadeeasy #taxinpic Fiscal Transparent Entity can be considered as liable to tax and a tax resident of the
Triangular cases
Saturday International Tax Gyan!! (SITG – 224) #taxmadeeasy #taxinpic Understanding the situation of triangular cases in case of Tax treaties
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
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
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
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
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,
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
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
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
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
Important pointers for NR while filing income tax return – 2024
Saturday International Tax Gyan!! (SITG -214) #taxmadeeasy #taxinpic Income tax return filing requirements for Non-residents and cases where PAN is to acquired mandatorily.
Taxability of clinical trail service from non-resident
Saturday International Tax Gyan!! (SITG -213) #taxmadeeasy #taxinpic Services provided by non-residents did not involve any transfer of technology therefore said payment was not for
Discussion on Non-discrimination clause
Saturday International Tax Gyan!! (SITG -212) #taxmadeeasy #taxinpic Tax rate applicable on PE of “Foreign Company” in India
Saturday International Tax Gyan- 4th Anniversary- 15.06.2023
(SITG No. 210) Dear all, We present you the PPT showing a glimpse of the 4th Anniversary celebration of SITG. Thank you everyone for showing your support. To
Guarantee fees will not be considered as interest
Saturday International Tax Gyan!! (SITG -209) #taxmadeeasy #taxinpic Guarantee fee charged by foreign entity for guarantee provided to banks to extend credit facilities to its
Reassessment for Investment in India by non-resident
Saturday International Tax Gyan!! (SITG -208) #taxmadeeasy #taxinpic Investment made in the share capital of Subsidiary company could not be treated as income as same
Taxability of ESOP on Proportionate basis
Saturday International Tax Gyan!! (SITG -207) #taxmadeeasy #taxinpic ESOP/ RSU granted to an employee who has worked in different countries during vesting period shall be
Taxability of salary income in India – Cross border
Saturday International Tax Gyan!! (SITG -206) #taxmadeeasy #taxinpic Taxability of salary income in India under cross border scenarios.
Relief from taxation on income from retirement benefit account maintained in a country outside India
Saturday International Tax Gyan!! (SITG -205) #taxmadeeasy #taxinpic Income accrued on such retirement plan will be taxable in the year of withdrawal or redemption (Section
Shipping income of Singapore Company will be taxed in Singapore only
Saturday International Tax Gyan!! (SITG -204) #taxmadeeasy #taxinpic Global income of tax resident of Singapore company from shipping operation is taxable only in Singapore and
Salary of a resident will not be taxable in India if employment exercised outside India
Saturday International Tax Gyan!! (SITG -203) #taxmadeeasy #taxinpic Where a resident assessee exercises his employment in US, and stays in US for more than 183
Protocol amending India- Mauritius Tax Treaty
Saturday International Tax Gyan!! (SITG -202) #taxmadeeasy #taxinpic Protocol amending the convention between the tax treaty of India and Mauritius for avoidance of double taxation
Taxation of ESOP in India would depend on period for which ESOP is granted
Saturday International Tax Gyan!! (SITG-201) #taxmadeeasy #taxinpic ESOP/ RSU shall be taxable in the country where employee was exercising his employment during the period for which ESOP
Service for background check and verification of employees not FTS or Royalty
Saturday International Tax Gyan!! (SITG-200) #taxmadeeasy #taxinpic Undertaking services in relation to background checks of employees or verification of testimonials cannot be considered as FTS or Royalty
Basics of USA taxation for Indian residents
Saturday International Tax Gyan!! (SITG-199) #taxmadeeasy #taxinpic Basics of USA taxation for Indian resident having companies in USA
Notification for incorporating MFN clause in India-Spain Treaty
Saturday International Tax Gyan!! (SITG-198) #taxmadeeasy #taxinpic CBDT issues notification for allowing MFN clause benefit to Spain from AY 2024-25
DRP cannot pass directions if Ld. AO has passed final order
Saturday International Tax Gyan!! (SITG-197) #taxmadeeasy #taxinpic Ld. DRP cannot pass directions if Ld. AO has already passed final assessment order without waiting for directions and assessee
Self-employment will also be considered as employment under section 6(1) of Income tax act
Saturday International Tax Gyan!!(SITG-196) #taxmadeeasy #taxinpic Employment as mentioned in Section 6(1) of the Income Tax Act shall also include self-employment or people going outside India for
Salary received in India for employment exercised outside India is not taxable in India
Saturday International Tax Gyan!!(SITG-195) #taxmadeeasy #taxinpic Salary received by a Non-Resident Person in relation to employment exercised outside India would not be considered as income accrued or
IUC charges received by Non-Resident telecom operators from Indian company not taxable in India
Saturday International Tax Gyan!!(SITG-194) #taxmadeeasy #taxinpic In this SITG we shall discuss Non-taxability of IUC charges received by Non-Resident telecom operators from Indian company with the help
Basic FAQs on International Tax Transactions
Saturday International Tax Gyan!! (SITG-193) #taxinpic #taxmadeeasy In this SITG we shall discuss various basic FAQs in relation to Non-residents and double taxation of various
International Business Transactions (Part-6)!!
Saturday International Tax Gyan!! (SITG-192) #taxinpic #taxmadeeasy Nature of transaction: Professional service
International Business Transactions (Part-5)!!
Saturday International Tax Gyan!! (SITG-191) #taxinpic #taxmadeeasy Nature of transaction: Repair, maintenance and related service
International Business Transactions (Part-4)!!
Saturday International Tax Gyan!! (SITG-190) #taxinpic #taxmadeeasy Nature of transaction: Managerial Services
International Business Transactions (Part-3)!!
Saturday International Tax Gyan!! (SITG-189) #taxinpic #taxmadeeasy We have come across various transactions, wherethe Indian entities/ persons make reimbursement payment to the foreign entitieswho have
International Business Transactions (Part-2)!!
Saturday International Tax Gyan!! (SITG-188) #taxinpic #taxmadeeasy Nature of transaction: Surveys and the related services
New Series- International Business Transactions (Part-1)!!
Saturday International Tax Gyan!! (SITG-187) #taxinpic #taxmadeeasy Nature of Transaction: Taxability on fees paid to non-resident for rendering services related to Project Review, Feasibility Study
Claiming additional FTC for withholding tax during the course of assessment proceedings if income already offered to tax
Saturday International Tax Gyan!! (SITG-186) #taxinpic #taxmadeeasy The assessee can claim additional foreign tax credit for withholding tax during the course of assessment proceedings if
Fees received for registering domain name from its customers does not amounts to ‘Royalty’
Saturday International Tax Gyan!! (SITG-185) #taxinpic #taxmadeeasy Fees received for registering domain name from its customers does not amounts to ‘Royalty’ GoDaddy.com LLC v. ACIT
Amendment to an explanation under Income tax will be retrospective or prospective?
Saturday International Tax Gyan!! (SITG-184) #taxinpic #taxmadeeasy Amendment made to the explanation which is in relation to another explanation or is beneficial to assessee should
Any modification in DTAA shall be available to the first nation only via notification by Union of India
Saturday International Tax Gyan!! (SITG-183) #taxinpic #taxmadeeasy Any modification in DTAA shall be available to the first nation only via notification by Union of India
All process are not covered under Royalty. Process which carries know-how or Intellectual Property are covered under Royalty
Saturday International Tax Gyan!! (SITG-182) #taxinpic #taxmadeeasy All process are not covered under Royalty. Process which carries know-how or Intellectual Property are covered under Royalty
Standard and automated service provider by the online service provider cannot be covered under FTS
Saturday International Tax Gyan!! (SITG-181) #taxinpic #taxmadeeasy Standard and automated service provider by the online service provider cannot be covered under FTS Amazon Web Services,
Assumption of ‘jurisdiction’ to be decided at the outset in case of non-resident entity
Saturday International Tax Gyan!! (SITG-180) #taxinpic #taxmadeeasy Assumption of ‘jurisdiction’ to be decided at the outset in case of non-resident entity Cricket South Africa (NPC)
Foreign assignment allowance is not taxable in India.
Saturday International Tax Gyan!! (SITG-179) #taxinpic #taxmadeeasy Foreign assignment allowance received by assessee for service outside India is not taxable in India. Durga Prasad Sana
Under India Germany Treaty Royalty is taxable on receipt basis
Saturday International Tax Gyan!! (SITG-178) #taxinpic #taxmadeeasy Under India Germany Treaty Royalty is taxable on receipt/ cash basis and not on accrual basis. M/s Faber
A guarantor is not require to deduct TDS on the purchase consideration paid by other entity (purchaser)
Saturday International Tax Gyan!! (SITG-177) #taxinpic #taxmadeeasy A person acting as a guarantor cannot be held liable for deducting TDS on payment made by the
Payment for domain registration & consideration will be considered as Royalty and FTS respectively
Saturday International Tax Gyan!! (SITG-176) #taxinpic #taxmadeeasy Amount received for domain name registration is considered as Royalty and amount received for web hosting service will
FTS from non-resident to Indian companies for business from India would be taxable in India
Saturday International Tax Gyan!! (SITG-175) #taxinpic #taxmadeeasy Payment made to non resident for technical services rendered outside India in relation to export by an Indian
While determining taxability of a service from non resident each transaction needs to be seen separately
Saturday International Tax Gyan!! (SITG-174) #taxinpic #taxmadeeasy Amount received by an assessee for sale of software and its support services will not be taxable as
An assessee can be eligible for split residency
Saturday International Tax Gyan!! (SITG-173) #taxinpic #taxmadeeasy An assessee can be considered as a resident of a country for a part of a year and
In case of CCPS converted equity shares date of issue/acquisition of CCPS shall be considered.
Saturday International Tax Gyan!! (SITG-172) #taxinpic #taxmadeeasy In case of CCPS, for India Mauritius Treaty date of issue/acquisition of CCPS shall be considered as date
Any right cannot be considered as Royalty. For royalty it should fall within specific category of definition as per DTAA
Saturday International Tax Gyan!! (SITG-171) #taxinpic #taxmadeeasy Transfer of any right cannot be covered under the definition of Royalty. To be considered as royalty it
Drawing for a specific project cannot be considered under FIS
Saturday International Tax Gyan!! (SITG-170) #taxinpic #taxmadeeasy Providing drawing and design for a specific project does not itself involve transfer of know-how. Hence, not covered
Income covered but not taxable as per specific provisions of DTAA, cannot be brought to tax under residuary provisions of the act or DTAA
Saturday International Tax Gyan!! (SITG-169) #taxinpic #taxmadeeasy Income covered but not taxable as per specific provision of DTAA, cannot be brought to tax under residuary
While determining PE, duration needs to be seen project-wise or country-wise
Saturday International Tax Gyan!! (SITG-168) #taxinpic #taxmadeeasy Merely because installation at both sites was done by the same contractors, the project cannot be treated as
Lease payment for an equipment which is not received can not be covered under Royalty
Saturday International Tax Gyan!! (SITG-167) #taxinpic #taxmadeeasy Lease payment for an equipment which is not received cannot be covered under the definition of Royalty as
Section 115A (Whether NRI earning interest income covered u/s 115A and having total income less than basic exemption limit is required to pay tax)
Saturday International Tax Gyan!! (SITG-166) #taxinpic #taxmadeeasy Section 115A (Tax on dividends, royalty and technical service fees in the case of foreign companies)
Inter-connectivity services received from foreign company is not taxable in India
Saturday International Tax Gyan!! (SITG-165) #taxinpic #taxmadeeasy The income received from transactions where the inter-connectivity services are being provided by a foreign company (NTO) to
Fee for providing data base access without technical assistance shall be considered as ‘Business Profits’
Saturday International Tax Gyan!! (SITG- 164) #taxmadeeasy #taxinpic Fees for providing data base access without any technical assistance is not considered as Technical service but
Non-residents are not required to declare foreign assets in India
Saturday International Tax Gyan!! (SITG- 163) #taxmadeeasy #taxinpic The assessee who is a foreign resident can not be asked to explain the assets located outside
Capital Gain covered under Article 13(4) earned in India can not be taxed in India if it offered to tax in Singapore
Saturday International Tax Gyan!! (SITG- 162) #taxmadeeasy #taxinpic Capital Gain covered under Article 13(4) of DTAA, earned in India by SIngapore Resident can not be
Automation services can not be considered as FTS and hence not taxable in India
Saturday International Tax Gyan!! (SITG- 161) #taxmadeeasy #taxinpic Where assessee is providing services which are standard services and are autmoated, same cannot be considered as
CBDT Circular on MFN Clause shall be applicable prospectively
Saturday International Tax Gyan!! (SITG- 160) #taxmadeeasy #taxinpic CBDT Circular on MFN Clause shall be applicable prospectively
Salary income from Indian employer for services outside India- Not taxable outside India
Saturday International Tax Gyan!! (SITG- 159) #taxmadeeasy #taxinpic Salary payable to an employee of Indian company who was deputed outside India, would be taxable outside
TDS not applicable u/s 195 in case of secondment of employees
Saturday International Tax Gyan!! (SITG No. 158) #taxmadeeasy #taxinpic Payment made to a Non-Resident Company with respect to the seconded employee would not be considered
Saturday International Tax Gyan- 3rd Anniversary- 10.06.2023
(SITG No. 157) Dear all, We present you the PPT showing a glimpse of the 3rd Anniversary celebration of SITG and 1st Anniversary celebration of FKF. Thank you everyone
Taxability to Non- residents on sale of unlisted equity shares
Saturday International Tax Gyan!! (SITG No. 156) #taxmadeeasy taxinpic Capital Gain arising on sale of unlisted shares by a non- resident has to be computed
MLI For Beginners Part 17 Article-14 (Splitting-up of contracts) and Article-15 (Closely Related Enterprises)
Saturday International Tax Gyan !!! (SITG No. 155) #taxmadeeasy #taxinpic MLI for Beginners ( Part 17) ARTICLE – 14 (Splitting- up of contracts) and Article-
MLI For Beginners Part 16 Article 13 (Artificial Avoidance of Permanent Establishment Status through the Specific Activity Exemptions)
Saturday International Tax Gyan !!! (SITG No. 154) #taxmadeeasy #taxinpic MLI for Beginners ( Part 16) ARTICLE – 13 (Artificial Avoidance ofPermanent Establishment Status through
MLI for Beginners Part 15 ARTICLE – 12 Artificial Avoidance of Permanent Establishment Status through Commissionaire Arrangements and Similar Strategies
Saturday International Tax Gyan !!! (SITG No. 153) #taxmadeeasy #taxinpic MLI for Beginners Part 15 ARTICLE – 12 Artificial Avoidance of Permanent Establishment Status through
MLI for Beginners Part 14 ARTICLE – 11 Application of Tax Agreements to Restrict party’s Right to Tax its own Residents
Saturday International Tax Gyan !!! (SITG No. 152) #taxmadeeasy #taxinpic MLI for Beginners ( Part 14) ARTICLE – 11 Application of Tax Agreements to Restrict
Total Oil India Private Ltd. Vs Deputy Commissioner of Income Tax
Saturday International Tax Gyan (SITG No.-151) #taxmadeeasy Total Oil India Private Ltd. Vs Deputy Commissioner of Income Tax DDT is a tax by company and
MLI for Beginners Part 13- Article 10 Curb tax evasion in triangular cases
Saturday International Tax Gyan!! (SITG No. 150) #taxmadeeasy #taxinpic MLI for Beginners (Part-13) – Article- 10 Anti abuse Rule for Permanent Establishments Situated in Third Jurisdictions