Treatise on Double Taxation Avoidance Agreements

Author: S Rajaratnam
Year: 2020

As amended by Finance Act 2020

With increasing cross-border transactions due to globalisation, it has become necessary for the taxpayers both in and out of India to become familiar with the tax implications, so as to avoid multiple levies and to order their affairs in a tax efficient manner. In view of the spate of amendments to law and the torrent of precedents, international taxation continues to be complex. Double Tax Avoidance Agreements are expected to ease the ways of the taxpayers to some extent, but some amendments to domestic law run counter to treaty override giving rise to a large number of issues. The knowledge of the domestic law and Double Taxation Avoidance Agreements in the light of the precedents goes a long way in helping the taxpayers to plan their business and for the tax administrators to enforce the law. Expectations of law as regards voluntary returns, advance tax, self-assessment tax, and other compliance requirements would require the non-residents and their associates in India to be wary of their duties. The documentation that is required and the data necessary for same is another area necessitated by Transfer Pricing Rules. Tax deduction at source is a still another area, where it has become extremely important to take due care to avoid the onerous consequences of failure to deduct tax, where it is necessary, by way of not only liability for tax failed to be deducted, but also of interest for the delay and possible penalty for default, besides the disallowance of payment itself for the year of payment, Every attempt has been made to cover all possible issues with precedents along with critical comments thereon as regards all issues relating to direct tax laws. The book is intended to help the taxpayers and their advisors to steer clear of controversies to the best extent possible in this field of non-resident taxation, where the law continues to be uncertain.