Cross Border Taxation involves two types of taxes in the hands of the parties who are subject matter of cross border transactions such as:
A) Tax on Income arising from cross border transactions
B) Tax on transaction subject matter of cross border transactions
Tax on income arising from cross border transactions may accrue and arise in India to both the parties to the transactions who may be Resident and/or Non-Residents in India which is subject to tax in India as per the Indian Income Tax Act, 1961. It may so happen that these parties may be subject to tax in both the tax jurisdictions i.e. resident and source jurisdictions. In such situation it will be tantamount to double tax on the same transactions which is economically unviable. To overcome the problem of double taxation India has entered into bilateral Double Taxation Avoidance Agreements (DTAAs) with many Countries around the World. These DTAAs provides relief to its tax residents based on the Income exemption and tax credit methods.
Tax on transaction is the tax levied by various tax jurisdictions in the form of Goods and Services Tax (GST) or Value added Tax (VAT) which is based on the principle of Consumption method i.e. tax is to be imposed by the tax jurisdiction which consumes the goods and/or services subject matter of cross border transactions. India has implemented Goods and Services Tax (GST) from 1st July, 2017 which is governed mainly by four legislations viz. Central Goods and Services Tax (CGST) Act, 2017, State Goods and Services Tax (SGST) Act, 2017, Integrated Goods and Services Tax (IGST) Act, 2017 and Union Territory Goods and Services Tax (UTGST) Act, 2017.
We, at DSRV, offered our services under advisory, planning, execution & implementation and handling any tax litigation for any related services including the following:
Under Income tax Act:
– Special tax rates on Investments in India by NRIs
– Taxation of expatriates
– Tax planning on foreign Companies having POEM in India
– Tax on remittances to Non-residents
– Structuring of foreign investment and business in India.
– Structuring of Indian investment and business outside India.
– Drafting documentation of International Transactions involving Transfer Pricing.
– Transfer pricing benchmarking and certifications
Goods and Services Tax (GST):
– Global GST/VAT impacts on goods and services.
– GST on import of goods and Services
– Transactions advisory
– Structuring businesses to optimize GST credit.
– Government incentives on export of goods and services.