International Tax

International Tax, technically referred to as Cross Border Taxation, is a field almost as wide as rest of the Income Tax Act itself. On the basis of it’s utility, it can broadly be classified as below:

Consultancy on receipts from India for Expatriates and Others:

• Determination of Residential Status
• TDS calculation for professional fee, expatriate salary and rate determination
• Income Tax Return filing
• Tax treatment of other incomes such as capital gains, other income etc.
• Lower TDS certificate
• FRRO certification
• Assistance in preparation of 15 CA
• Certification in 15 CB
• Consultancy on TDS applicability and rate determination
• Representation with the tax authorities
• Income Tax Return filing
• Availing Foreign Tax Credit – Form 67

Companies/other entities having some business connection in India:

• Consultancy for withholding tax compliance
• Profit attribution calculation
• Royalty, Technical Services from one to another
• Taxation of funds being repatriated
• Lower TDS certificate
• Assistance in preparation of 15 CA
• Certification in 15 CB
• Consultancy on TDS applicability and rate determination
• Representation with the tax authorities
• Income Tax Return filing
• Availing Foreign Tax Credit – Form 67

Indian subsidiaries of Foreign Companies:

• Consultancy for withholding tax compliance
• Profit attribution calculation
• Royalty, Technical Services from one to another
• Taxation of funds being repatriated
• Lower TDS certificate
• Dividend taxation
• FLA Return (RBI)
• CbCR – Country by Country Reporting
• Transfer Pricing study and reporting
• Representation with the tax authorities
• Income Tax Return filing
• Assistance in preparation of 15 CA
• Certification in 15 CB
• Consultancy on TDS applicability and rate determination
• Representation with the tax authorities
• Income Tax Return filing
• Availing Foreign Tax Credit – Form 67

To arrive at the correct conclusion, not only do multiple Chapters of the Income Tax Act, 1961 have to be consulted but also the multilateral Double Taxation Avoidance Agreements (DTAA), and since April 2020, even bilateral Multi-lateral Instruments (MLIs) that deal with tax law settlement between 2 signing countries. These MLIs directly impact the DTAAs.

And all these are a direct result of years of discussions at the Organisation of Economic Cooperation and Development (OECD). Not for nothinghas cross-border taxation received notoriety of being extremely complicated.