In this Globalisation World, Every country is regulated by its own International Tax rules & Regulations. the integration and cross-border transactions with the foreign countries are increasing. DTAA has entered into the International Taxation issues to intensify the cross-border financial transactions. This issue of taxability of same income in multiple countries can be diminished in many methodical ways, one of the effective methods is a tax agreement between the countries.
Our team help you in getting out of this taxation complexities and uncertainties both Indian & Multinational Clients. And provide tax management services to NRIs too, by following the jurisdiction of the Indian laws and regulations along with overseas countries & Double Taxation Avoidance Agreements (DTAA).
There are two types of DTAAs: • Comprehensive DTAAs are the ones covering almost all types of incomes. • While Limited DTAAs are the ones covering only certain types of incomes.
The tax relief is in two forms: either a tax credit is given up to the amount the tax has been paid abroad or the income earned in a foreign country is exempt from tax in the country of residence. DTAAs may specify the relief from some specific tax or all taxes that can be covered, depending on the agreement between the two countries.