International Taxation Course – Interpreting Tax Treaty (DTAA)

Our Comprehensive International Taxation Course on Article by Article , analysis of Tax Treaty helps students to understand all aspects of International Tax  – The International Tax  Course has  students from 30+ countries. This  International Tax Course helps you learn, how to interpret various Articles in Tax Treaty

 

  • Language : English
  • Video Duration: 20.45 Hours.
  • Along with : E-Book (538 pages) 
  • Pendrive – Rs 3800 ( 6 Months Validity )

For any query Call – 9667222008

This Course is meant for learners who want to learn, explore and enhance their knowledge on the complex area of International Tax.

International Taxation Course Key Features

  1. Created by Faculties with over 15+ Years Practical experience of providing service to biggest global Multinationals, work experience with KPMG
  2. Students from over 31 countries already subscribed to the course across different platforms
  3. Video content of 20 hours (approx) and Powerpoint presentations on the subject.
  4. With India USA Treaty as a basis, detailed explanation of  general concepts and principle applicable to all Treaties
  5. Several Case studies to explain concepts in an easy to learn manner
  6. 2000+ Chartered Accountants trained in live classes

The International Taxation Course covers the following Article. Each Article is illustrated through a Series of Presentations, containing topics in an easy to understand manner.

International Taxation Course – Demo Videos

Taxes Covered under Article 2 and its importance

Taxation of Royalty and Fee for Technical Services

About the Instructor


Arinjay Jain
I am an expert in International Taxation and M&A tax structuring wherein I have worked with KPMG as a Director in Indian practice helping large number of MNC, as well as domestic companies in the area of Inbound Investments, Outbound acquisition, cross border tax structuring, amalgamation, demerger, business sale amongst others. I have been a visiting faculty and have taught over 1500 professional students, until date taught over 20000 students through online effort to promote philanthropy in basic education.

Testimonials

CFO of Indian Subsidiary of US MNC –
Thank you very much for creating a wonderful e-learning modules on DTAA and International Taxes. I find these modules very useful, as I discharge my responsibility as Regional Head – Finance for a US MNC

Kilian Karimov
Pretty good and concise coverage

Louisa Deborah Roberts
So far the course is very simple to follow

Topics Covered under International Taxation Course

Article 1 – Person covered

  • Need for a tax treaty in International Trade – Part 2
  • What is a Tax Treaty 
  • Various Models of Tax Treaties – UN, OECD and US Model 
  • What are the key considerations for the Contracting Countries at the time of ent 
  • Contents of a Tax Treaty – Various Clauses 
  • Consideration of tax treaties – Not only tax
  • Provision of Income Tax Act, 1961 vs. Tax Treaty – Section 90(2) 
  • General provisions of Tax Treaty 
  • Impact of subsequent amendment of Income Tax Act, 1961 on earlier tax Treaties 
  • Income Taxable under domestic law but no corresponding Treaty clause 
  • Withholding tax – Governing rules vis a vis Tax Treaties 
  • Interpretation of Treaties – Liberal or Strict
  • Taxable under the Act but Treaty condition for tax not satisfied 
  • Tools for Interpreting Treaties – Protocol, Technical Expalnations, Commentaries 
  • Vienna Convention on Law of Treaties as an aid to Treaty Interpretation 
  • Purpose of Model Commentaries – OECD and UN Model 
  • Purpose of Model commentaries & India’s stand on OECD Commentary 
  • India’s stand on UN Model Convention and UN Commentary
  • Other aids for Interpreting Treaties 
  • Different views by two contracting states 
  • Interpretation of “words” used in Treaty – Treaty definition vs Income Tax Act, 

Article 2 – Taxes Covered

  • What are the taxes which are covered in Tax Treaty under
  • Understanding draft Article 2 of India- Netherlands and India- USA Treaty 
  • Key Features and Coverage of Article 2 relating to taxes 
  • What is regarded as Taxes on income and on capital 
  • Key feature of article 2(2) of India USA Treaty
  • Article 2(3) – Specific countrywide taxes which are covered 

Article 4 – Residence

  • Who are Resident – Article 4(1) 
  • Reasons of being liable to tax in a Country, which should be satisfied to become 
  • Sovereign Funds and Collective Investment Vehicles – Tax residency 
  • Meaning of the Term Resident and Person 
  • Interplay of Article 4(1) and Income Tax Act 1961 
  • Liable to tax therein – Person who are not taxable 
  • Proof of being a resident of a Contracting State 
  • Article 4(2) – Tie breaker Rule in case of an individual 
  • Permanent Home, centre of Vital Interest, Habitual abode and Nationality 
  • Article – 4(3) – tie breaker rule – person other than an individual 

Article 5 – Permanent Establishment

  • Basics of Permanent Establishment and Business connection 
  • Concept of Business Connection and Permanent Establishment under the Income Tax 
  • Characterstics of Permanent Establishment and key components of the Presentation
  • Fixed Place of Business Permanent Establishment – Article 5(1) 
  • What all is covered under Article 5 
  • Meaning of “Business carried on by the PE” and certain Case studies on PE 
  • Article 5(2) – Certain specific inclusion in Permanent Establishment and Constru 
  • Service Permanent Establishment 
  • Auxilliary or Preparatory Activities which do not result into a PE 
  • Agency Permanent Establishment – Dependent Agent 
  • “Habitually securing orders” in the Source State for NR 
  • Article 5(5) – Independent Agent Permanent Establishment 

Article 6 – Income from Immovable Property

  • What is taxable under Article 6 – Immovable Property 
  • Right of India and Treaty partner to tax income from Immovable Property 
  • Key Issues in Article 6(1) – Location , computation of income 
  • Meaning of ” immovable property” and “Property used to provide IPS 
  • Computation of income from immovable property 

Article 7 – Taxation of Business Profits

  • Steps to ascertain applicability of Article 7 – Business Profits 
  • Structure of various clauses covered under Article 7 of the India USA Treaty 
  • Right of the Source State to tax Business Profits and which profits are taxable 
  • Computing profits attributable to a PE under Article 7(2) 
  • Expenses allowed as a deduction in computing income of the PE and cross charges 
  • Turnkey projects 
  • Mere purchase of goods by PE and attribution of income – Article 7(4) 
  • Profits from assets and activities of the PE – Article 7(5) 
  • Taxation of items dealt with in other Article where recipient has a PE in India 
  • Meaning of business profits under Article 7 (7) 
  • Rule 10 of the IT Rules – Allocation of profits to NR 

Article 8 – Taxation of Shipping and Air Transport Profits

  • Profits from Shipping or Aircrafts business – Right to tax and condition for tax 
  • Understanding impact of Place of Effective Management in Taxation of Shipping an 
  • Conditions for applicability of Article 8 and income excluded from Article 8 
  • Engineering Services to other Airlines – Whether covered under Article 8 of India
  • Article 8(2) – Meaning of Profits from operation of ships and aircrafts, Meaning 
  • Article 8(3) – Profit from containers 
  • Article 8(4) – Taxation of Profit from participation in a joint pool 
  • Article 8(5) – Interest on funds connected with operations of Shipping and Airlines
  • Activities covered and excluded by Article 8

Article 9 – Associated Enterprise

  • What are Associated Enterprise 
  • Components of Associated Enterprise 
  • Associated Enterprise – Article 9(1) 
  • Meaning of Control 
  • Case Study on Excessive expenditure disallowance under Article 9(1) 
  • Article 9(2) – Coorelative adjustments alongwith case studies and example 
  • Concept of Secondary Adjustment 
  • Associated Enterprises as per IT Act – Ownership, Loan, Guarantee 

Article 10 – Dividend

  • Meaning of Dividend 
  • Right to tax dividend, what is covered as dividend and meaning of dividend paid 
  • Right of Source State to tax Dividend – Part 1 – Beneficial ownership 
  • Beneficial ownership and right to opt for provision of Income Tax Act, 1961 
  • Meaning of Dividend – Article 10(3) 
  • PE or Fixed base and taxation of dividend – Article 10(4) 
  • Right to tax dividend declared by foreign company 

Article 11 – Taxation of Interest

  • Article 11 – Taxation of Interest and Various issues arising therein 
  • Article 11 (1) – Right of state of residence to tax interest 
  • Beneficial ownership test and examples on conduit companies for interest income 
  • Exemption in source state for certain interest 
  • Article 11(4) – What is covered as Interest 
  • Taxation of interest where the Non Resident has a PE in India 
  • When shall interest be treated as Arising in India 
  • Taxation of excess interest paid to related party 

International Taxation Course – Article 12 – Royalty and Fee for Technical Services

  • Introduction to Royalty and Fee for Technical Services 
  • What topics are covered in this Course of Royalty and Fee for Technical Service
  • Key Learning objectives of the Presentation 
  • Royalty & FTS – Scenario of Taxability in India and Rights of India and Other
  • Beneficial Provision of the Treaty or Act – Which one are applicable ? 
  • Proof of Tax Residence of Non resident – Section 90(4) & 90(5) 
  • Approach to ascertain Tax implications on Royalty & FTS 
  • Approach to ascertain Tax implications on Royalty & FTS and ascertaining withholding
  • Section 9(1) – Charging provisions for taxation of Royalty 
  • Imparting of any information Classified as Royalty 
  • Royalty and FTS – When do they Arise in India 
  • Royalty for Transfer of all or any rights 
  • Royalty under Income Tax Act – Types of payments covered 
  • Scope of Total Income and Royalty & FTS 
  • Tax deductibility of Royalty in hands of Payer 
  • Article 12 (1) – India USA Treaty – Right of the state of residence to tax royal 
  • Article 12(3) – Definition of Royalties 
  • Whether both Dry and Wet Lease amount to use of Equipment 
  • Lease and Sale of Ship – Which one is Royalty ? 
  • Payment for use Copyright of literary or scientific work 
  • Royalty definition – Comparison of Act, OECD & UN Model 
  • Article 12 (4) – India USA Treaty – fee for included services 
  • Concept of “Make available” and development and transfer of technical plans and 
  • Article 12 (5) – India USA Treaty – FIS exclusion 
  • Article 12(6) – Royalty and FIS effectively connected to a PE 
  • Articel 12(6) – Where do royalty or FTS arise

Article 13 Capital Gains

  • Introduction to Article 13 Capital Gains
  • Objectives of Presentation on Capital Gains
  • Identify which all Capital Assets transfer and taxation are covered under Articl
  • Which Country has the right to tax Capital Gains ?
  • Approach to be followed to ascertain Taxation of Capital gains
  • Meaning of term “Alienation”
  • Existence of PE of Transferor on Capital Gains arising from Alienation of Asset
  • Minimum Alternate Tax (MAT) on Foreign companies deriving capital gains
  • Capital gains on transfer of immovable property covered under Article 13(1)
  • Case Study (a) Share sale of Indian Co. owning immovable property; Tenacy Rights
  • Article 13(4) – Transfer of shares of a real estate company
  • Article 13(5) – Alienation of any other property
  • Factors not considered to be relevant while applying Article 13(5)
  • Capital gains on transfer of ship

Article -14 – Independent Personal Services

  • Right of State of Residence to tax income from Independent Personal Services 
  • Applicability of Article 14 to Non individuals 
  • Payments to Foreign Company for Artiste Services 
  • Inclusions and exclusions from Article 14 
  • What is a Fixed Base and its examples 

Article – 15 – Dependent Personal Services

  • Introduction to Article 15 and difference with Independent Personal Services 
  • Provision of the Income Tax Act for Taxation of Salaries paid to Non Resident 
  • Right of Contracting States to tax employment income 
  • Taxation of Stock Option 
  • Short Stay exemption – DPS income taxable only in State of Residence 
  • Employment exercised aboard ship or aircraft operating in International Traffic 
  • Article – 16 – Director Fee
  • Article 16 – Taxation of Director’s Fees and Other similar payments 
  • Taxation of top level managerial remuneration 

Article – 17 – Artistes and Sportsperson

  • What is covered by Article 17 
  • Scope of taxation of an Artiste or Sportsperson 
  • Crtierion for services for Article 17 
  • Who are covered as a Sportsperson or Entertainer 
  • Who are covered as a Sportsperson or Entertainer 
  • Meaning of “Personal activities” for Article 17 
  • Income covered under Article 17 and Allocation of Consolidated Income 
  • Certain issues in connection with Article 17 
  • Income of Artiste accruing to a third person 
  • Triangular Cases – Application of correct Treaty 
  • Computation of Income for Article 17 in Source State – Mechanism 
  • Commission to Non resident for arranging Artiste-Whether taxable under Article 17 

International Taxation Course – Article-18 Pension and other remunearation

  • Scope of Article 18 – Pension and other similar remuneration
  • Type of Pensions covered
  • What is covered under Pension and other Similar Remuneration
  • Pension Paid as Consideration for Past employment
  • Non periodical payments for past employment – Article 18(2)
  • Pension paid out of social security system of the State and meaning of annuity

Article 19 – Government services

  • What income is covered under Article 19 
  • What is meant by Government, State or local authority for purpose of Article 19 
  • Right to tax with Foreign State if services rendered there
  • Right to tax with Foreign State if services rendered there, recipient is a resid 

Article – 20 – Students

  • Who all are covered under Article 20 – Taxation of Students 
  • Conditions to claim exemption for taxation of students under Article 20 
  • Resident for the purpose of Article 20 
  • Income of students from Sources Outside the Host State 
  • Taxation & Purpose of visit of student 

Article 21 – Other Income

  • Applicability of Article 21 – Other Income 
  • Key characteristics of Other Income Article 21 
  • Meaning and coverage of “Dealt with” to ascertain if income is taxable 
  • Taxability of income as other income when relevant clause absent – Royalty 
  • Taxation of Excess royalty payments to related party as Other Income 
  • Taxation of other income attributable to the PE of the Non resident in India 
  • Right of India to tax Other income which arise in India 

International Taxation Course – Article 23 – Elimination of Double Taxation

  • Introduction to Article 23 – What is covered 
  • Applicability of Article 23 – Losses in State of Residence and taxability 
  • Types of Relief from Double Taxation – Unilateral and Bilateral Relief 
  • Underlying credit and Tax Sparing 
  • Methods of Tax Credit – Exemption and Credit Method 
  • Article 25(1) of the India USA Treaty – Credit against the US taxes 
  • Article 25 (3) – India USA Treaty – Where does income arise 
  • Key controversies issues in claiming Foreign Tax credit 
  • How to claim credit for the taxes paid in Foreign country and Triangular Treaty 

Article – 24 – Non-Discrimination

  • Introduction to Non Discrimination and Types of discrimination under Treaty 
  • Article 24(1) – Discrimination based on Nationality 
  • Discrimination to a PE 
  • Deduction of expenses to an Indian Company – Non Discrimination 
  • Article 26 (4) – Discrimination based on Indian or Foreign ownership 
  • Article 26(5) – PE tax or Limitation on deduction of expenses under Article 7(3) 
  • Examples of Non Discrimination 

Article 25 – Mutual Agreement Procedure

  • What is Mutual Agreement Procedure (MAP) and its applicability in the Treaty 
  • Implementation of MAP under Indian domestic laws 
  • Right to file MAP, procedure for MAP application, and interaction 
  • Article 27(2) and Article 27(3) 
  • Developing appropriate Bilateral and Unilateral procedure for making MAP work 
  • Arbitration clause in Treaty under MAP 
  • Key issues and challenges for MAP and following application in subsequent years 
  • Article – 26 – Exchange of Information

Article 26 – Exchange of Information

  • Key Characterstics of exchange of information 
  • Article 28 (1) – Use and Secrecy of information obtained under EOI 
  • Article 28 (2) – Frequency of exchange of information by Contracting States 
  • Article 28(3) – No obligation of requested state to provide information 
  • Obligation to provide information requested for Requested State
  • Article 28 (5) – Taxes covered under Article 26 
  • Decline banking / ownership information under certain circumstances for exchange 

Article 27 – Assisstance in Collection of taxes

  • Background of “Assistance in Collection of Taxes” 
  • Applicability of Article on Assisstance in Collection of Taxes 
  • Revenue claims that a Treaty partner shall Assisst in Collection 
  • Article 27(3) – Tax to be collected as if it were own tax of other Contracting 
  • Interim Measures of conservancy for collection of Revenue claim 
  • Priority of revenue claim India Poland Treaty – Article 28(6) 
  • Proceedings before courts – Article 28(7) 
  • Revenue claim ceases to exist – Article 28(8) 
  • Non obligation of other Contracting State to recover revenue claims 

Article – 28 – Diplomatic Mission

  • Taxation of Members of Diplomatic Mission and Consular Posts 

Article – 29 – Entry into Force

  • Entry into force and process of concluding a Treaty 
  • Entry into Force – India US Treaty, Effective date for Treaty and impact 

International Taxation Course – Article 30 – Termination

  • Termination 

 

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