Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: form 3cd :: list of goods taxed at 4% :: cpt :: VAT Audit :: Central Excise rule to resale the machines to a new company :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: VAT RATES :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS
 
 
« News Headlines »
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj
 Why seeing Form 26AS is a must before filing tax return and how to access it
 No tax on notice period pay cut

Thumbs-up for tax relief to NRIs
June, 30th 2006
 

News

30th June, 2006

Thumbs-up for tax relief to NRIs

The Income-Tax Appellate Tribunals recent decision not to tax non-resident Indians working in the United Arab Emirates (UAE), has found support among tax experts and courts abroad.

The Netherlands-based Professor Klaus Vogel, an international taxation guru, in his column Tax Monitor published in the Bulletin for International Taxation, mentioned the ITAT Mumbai decision, which arose in the case of Green Emirates Shipping and Travels, found a parallel in a Dutch courts decision.

The ITAT decision reversed an earlier decision by the Authority for Advanced Ruling (AAR) which held that since the UAE does not have an individual income tax regime in place, the taxpayer is not entitled to the provisions of the Double Taxation Avoidance Agreement.

The ITATs point was this the right to tax vests with the member states of the UAE and that right, whether exercised or not, remains the exclusive right and hence the taxpayer is entitled to the provisions of the treaty.

The decision provides relief to NRIs in UAE who remit about Rs 4,000 crore annually in India. The ITATs decision also removed confusion created by the Authority for Advance Ruling which decided in favour of the revenue.

The ITAT gave the ruling in the case of Green Emirate Shipping & Travels, a shipping company based in UAE. The assessing officers contention was that since UAE does not have a tax regime, the shipping company is liable to pay tax in India. The provisions of the Double Taxation Avoidance Agreement between both the countries, do not apply here.

The ITAT bench held that since the right to tax UAE residents vests with the UAE governemnt, that right, whether exercised at present or not, continued to remain the exclusive right of the UAE government. The exemption from tax is independent of whether the UAE at present levies tax or not, ITAT observed. The ITAT took the stand that a tax treaty takes into account not only the current taxation but potential double taxation.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

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