DTAA Between India & UAE. (*Also see legal updates at the end of this article). Agreement For Avoidance Of Double Taxation And Prevention Of Fiscal Evasion . India-UAE income tax treaty: The Rajkot Bench of the Income-tax Appellate Tribunal held that because the taxpayer was liable to tax in the. A person who was resident and ordinarily resident of India went to Dubai in April for the purpose of employment. In the previous year.

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An individual who is a resident of a Contracting State and who is temporarily present in the other Contracting State under arrangements with the Government of that other Contracting State solely for the purpose of training or study shall be exempt from tax in that dtaq Contracting State in respect of remuneration received by him on account of such training or study.

The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein.

In order to determine the country of residence for a legal entity, the state takes into consideration whether the business has one of the following establishments on its territory:. The provisions of Articles 15, 16 and 17 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political sub-division or a local authority thereof.

The same measure is respected as well in India for the income tax, surtax, wealth tax and other similar taxes. Penalty charges for late payment uaee not be regarded as interest for the purpose of this Article. Whether you have a business in the UAE you might consider employing professional legal advice from our attorneys in Dubai.

Double tax treaty UAE – India

Quick responses and excellent personalized approach to clients! In case of divergence amongst the texts, the English text shall be the operative one. Though according to draa interpretation of article 4 of DTA only persons who are actually subjected to tax in UAE can be treated as resident of UAE to qualify for lower rate of tax in India, a liberal interpretation according to which persons who could be made liable to tax in UAE though not actually subjected to tax in UAE can be regarded as residents of UAE so as to be eligible for benefit of lower rate of tax in India, should be adopted—Mohsinally Alimohammed Rafik v.

The Supreme Court held that a circular issued by the Central Board of Direct Taxes specifying the monetary limit for filing an appeal before the Appellate Tribunal, High Courts, and Supreme Court applies even to pending matters, subject to certain conditions. Our law firm in Dubai offers professional legal counseling, tax planning and other legal services for investors conducting businesses between Uaee and UAE.


ARTICLE 29 – Limitation of benefits – An entity which is a resident of a Contracting State shall not be entitled to the benefits of this Agreement if the main purpose or one of the main purposes of the creation of such entity was to obtain the benefits of this Agreement that would not indoa otherwise available. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount.

Hae competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoidance of taxation not in accordance with the Agreement. Where, in accordance with any provision of the Agreement, income derived or capital owned by a resident of a Contracting State is exempt from tax in that State, such State may, nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

The Income Tax Department appeals to taxpayers NOT to respond to such e-mails and NOT to share information tdaa to their credit card, bank and other financial accounts. How to file GST Returns? The competent dtwa of the Contracting States shall exchange such information as is necessary for carrying out the provisions of the Agreement or for the prevention or detection of evasion of taxes which are the subject of this Agreement.

You will not continue to receive KPMG subscriptions until you accept the changes. In this Agreement, unless the context otherwise requires: India-UAE income tax treaty: This is the time India require a lot of investments and this agreement can facilitate it, Shetty said.

However, such royalties may also be taxed in the Contracting Uqe in which they arise and according to the laws of uad State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 10 per cent of the gross amount of such royalties.

The Agreement shall enter into force on the date of the later of these notifications and shall thereupon have effect—.

Notwithstanding the provisions indua paragraph 2 and Articles 7, 14 and 15, where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such in a Contracting State accrues not to the entertainer or athlete himself but to another data, that income shall be taxable only in the other Contracting State, if that other person is supported wholly or substantially from the public funds of that other State, including any of its political sub-divisions or local authorities.


The new service, the first in the MENA region, aims to provide non-Muslim expatriates with the ability ue register English language wills that will dtas their assets to be transferred upon death according to their wishes. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

I was surprise because i was first fall a victim of scam!

Save, Curate and Share Save what resonates, curate a library of information, and share content with your network of contacts. The provisions of paragraph 1 shall also apply to income derived from the direct use, letting, or use in any other form of immovable property.

Double tax treaty UAE – India

The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as inria the interpretation or inia of the Agreement.

The assessing officer disallowed the said expenditure under section 40 a i of the IT Act as the assessee failed to deduct tax at source. Thank you for sharing it. The nationals of a Contracting State shall not be subjected in dtaa other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances and under the same conditions are or may be subjected.

Any information so exchanged shall be treated as secret but may be disclosed only to persons including ineia court or administrative body concerned with the assessment, collection, enforcement, investigation or dtsa in respect of the taxes which are the subject of this Agreement, or to persons with respect to whom the information relates. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of independent status within the meaning of this paragraph.

In the case of CIT vs. Once again it is clarified that in respect of payments to be made to the Non-Resident Indians at the UAE, tax at source must be deducted at the following rates: