« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  Lack of income demoralises TRPs... Foreign cos get notices for additional income tax... » India-Iran DTAA stuck over 'PE' August, 14th 2007 The proposed India-Iran Double Taxation Avoidance Agreement (DTAA), which the two countries included in their joint New Delhi declaration in 2003, has run into a hurdle over the knotty issue of what would constitute the definition of Indian companies permanent establishment in Iran.   The DTAA would help, among others, oil companies avoid paying taxes in both countries. Iran has the second largest gas reserves in the world.   Last year, ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corporation, and Oil India Ltd discovered both oil and gas in the prospective Farsi block in Iran. Other Indian companies, such as Essar Oil, are looking for oil and gas acreages in Iran.   Recently, official-level discussions between the two countries have picked up pace. A key matter in the discussion is the permanent establishment issue. On the one hand, Iran has proposed that the location where the oil companies carry out exploration activities be treated as permanent establishment for taxation purposes. This basically means that oil exploration facilities of Indian companies will be treated as permanent establishment and thus liable to tax even if they do not have a branch, office or a factory there.   India, on the other hand, is of the view that a place of exploration should be treated as a permanent establishment only if the exploration work is carried out for more than 182 days in any 12-month period. The Indian view is based on the present rules in Iran where oil exploration contracts are awarded for a minimum period of four years, and would thus exceed the 182 days threshold we have proposed, official sources said.   Iran has, however, not agreed to Indias proposal saying that most exploration contracts are given to sub-contractors and the minimum four-year period does not apply to them. It is the income of the sub-contractors that Iran wants to tax, sources said.   India has entered into DTAA with 65 countries including the US, UK, Japan, France, Germany and investment routing destinations like Mauritius. These agreements provide for relief from the double taxation in respect of incomes by providing exemption and also by providing credits for taxes paid in one of the countries.   These treaties are based on the general principles laid down in the model draft of the Organisation for Economic Co-operation and Development, with suitable modifications as agreed to by the other contracting countries.