Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: empanelment :: VAT RATES :: form 3cd :: articles on VAT and GST in India :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TDS
 
 
News Headlines »
  I-T department asks taxpayers to update their information on e-filing portal
  How to check income tax refund status
 GST panel to consult MSMEs in October end to further ease tax rigour
  How to check income tax return status
 Been Served a Notice by the Income Tax Department? Here’s How You Can Respond
 Seeks to amend the CGST Rules, 2017 - 45/2017 - Central GST (CGST)
 Government provides clarity on tax rate
 Processing of returns in Form ITR-I under section 143(1) of the Income-tax Act, 1961
  Filing of Reconciliation return in form 9 for the year 2016-17
  Today is last date for filing GSTR-1 forms for July; govt rules out further extension
 Today is last date for filing GSTR-1 forms for July; govt rules out further extension

Amendments to India-UAE tax treaty coming into force next year
December, 06th 2007
Includes determination of resident status

The Government has sought to put to rest the uncertainties regarding the interpretation and application of various provisions of the India-UAE tax treaty.

India and the UAE have signed a Protocol that has introduced key amendments that affect computation of business profits, dividends, capital gains, determination of residence status and provides for limitation of benefits clause to prevent misuse of tax treaty.

This Protocol, which has now been notified, will come into effect, for incomes arising in India, from April 1, 2008, that is financial year 2008-09.

As per the amendments, the duration of stay in the UAE would be the criterion for determining residency rather than factors such as fiscal domicile. Moreover, a company that is incorporated in the UAE and wholly managed and controlled there alone would be considered as a resident of UAE.

On the capital gains front, the Protocol has brought an amendment that seeks to withdraw the capital gains protection that was hitherto sought to be utilised by the UAE residents under the double taxation avoidance agreements (DTAA) entered into in April 1992.

Capital gains

As per the tax treaty, capital gains from sale of any property, including shares, other than immovable property, is taxable only in the country in which the seller is resident.

After the latest amendments, the capital gains on sale of shares would be taxed in the country in which the company is a resident. Moreover, capital gains from sale of shares of a company whose property mainly comprised immovable property would be taxed in the country where such property is situated.

The amendments to the tax treaty, through the Protocol, may result in revisiting of inbound investments that are originating from the UAE, especially in view of the amendments to the Article dealing with capital gains. The introduction of limitation of benefits clause to prevent treaty abuse is a welcome measure, Mr Aseem Chawla, Tax Partner, Amarchand & Mangaldas told Business Line.

Mr Rahul Garg, Executive Director, PricewaterhouseCoopers (PwC), said that the issue of application of treaty has been set at rest by prescribing a new criterion of residency based on number of days of stay and place of incorporation and management control.

Also, the capital gains tax protection available to the UAE residents in respect shares of Indian companies has been done away with. Also, it is now provided that the capital gain would be liable to tax in India in the hands of UAE resident, if underlying immovable property of the company is situated in India, Mr Garg said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions