International Taxation Overview
International taxation governs cross-border income, global business transactions, and tax treaty applications. It ensures avoidance of double taxation, proper tax credit mechanism, and regulatory compliance.
- Double Tax Avoidance Agreements (DTAA)
- Foreign Tax Credit (FTC)
- Transfer Pricing Regulations (Section 92)
- Withholding Tax on Cross-border Payments
- FEMA Compliance
- Global Structuring & Tax Planning
Why International Tax Advisory is Critical?
- Prevents double taxation
- Minimizes cross-border tax exposure
- Ensures FEMA & RBI compliance
- Avoids litigation & heavy penalties
DTAA & Withholding Tax Advisory
- Tax residency analysis
- Determining treaty benefits
- Lower withholding certificate applications
- Equalisation Levy advisory
- Section 195 compliance
Practical Example
If an Indian company pays royalty to a US entity, domestic rate may be 10% + surcharge, but DTAA may restrict it to 10%. Correct application avoids excess tax deduction.
Transfer Pricing Compliance
- Benchmarking studies
- Preparation of TP Documentation
- Form 3CEB certification
- Inter-company transaction analysis
- Safe Harbour Rules advisory
- APA advisory support
Transfer Pricing ensures arm’s length pricing for related party international transactions. Non-compliance may attract penalties up to 200% of tax adjustment.
Permanent Establishment (PE) Advisory
- Fixed place PE analysis
- Dependent agent PE
- Service PE determination
- Attribution of profits
Example
If a foreign company has employees operating in India beyond 183 days, it may create Service PE leading to Indian tax liability.
FEMA & Cross-Border Structuring
- Overseas Direct Investment (ODI)
- Foreign Direct Investment (FDI)
- ECB compliance
- RBI reporting & filings
- Cross-border restructuring
Non-compliance under FEMA can attract penalties up to 3 times the amount involved in contravention.
NRI & Expatriate Taxation
- Residential status determination
- Global income taxability
- Foreign asset reporting (Schedule FA)
- Black Money Act compliance
- Tax planning for returning Indians
Example
An NRI earning salary abroad but having rental income in India must file Indian return for Indian-source income only.
Our International Tax Services Include:
- Cross-border tax planning
- Global holding structure advisory
- M&A international tax advisory
- Litigation & representation