Arinjay Academy » International Tax - Interpretation of Treaty » International Taxation Course – Interpreting Tax Treaty (DTAA)

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

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

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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