Preface
In the present era of globalisation, the task of dealing with taxation issues arising from cross-border transactions has become more and more challenging for any professional indulged in the practice of tax laws, due to complicacies and intricacies involved therein. While entering into cross border transaction, the parties involved are required to consider several issues with a view to reaping maximum benefits available under the law and thereby reducing their effective tax rates. The core areas required to be looked into are as under :
-- Analysis of relevant DTAAs
-- Implication of transfer pricing provisions
-- Study of GAAR
-- Obligation as regards TDS and withholding tax
-- Understanding as regards Advance Pricing Agreement (APA) and Mutual Agreement Procedure (MAP)
-- Role of Authority of Advance Rulings, etc.
The present Book is designed to cover almost all the important issues relating to international or cross-border transactions under the Income Tax Law. Among all the abovementioned issues, the issue relating to 'Transfer Pricing' is of paramount importance. In a global economy the multinational organizations used to follow certain practices with the objectives of shifting income from one country to another where rates of taxation are more favourable to them. For this purpose transfer prices are set in such a way that less profits are booked in countries with higher tax rates. In order to curb probable tax avoidance by means of transfer pricing, certain provisions have been inserted in the Income Tax Act. The application and interpretation of these provisions has given birth to several controversial issues, resulting in more and more case law on subject of transfer pricing. Looking at the need of today, this book deals with Transfer Pricing issues in quite detail.
In cross border transaction, generally double taxation issue arises due to levy of tax by two or more jurisdictions on the same incomes. Such double taxation is mitigated by way of tax treaties entered into between two countries. These treaties limit taxing power of each State and involve a negotiated sharing of tax revenues by two States. The book therefore deals with DTAAs and related issues separately, in systematic manner.
Tax planning in respect to cross border transactions also requires adequate attention. The concept of Permanent Establishment and the form of business entity are very important and should be thoroughly analysed, otherwise it may lead to unnecessary tax consequences. A separate part is, therefore, devoted to "Planning with Respect to International Taxation".
The scheme of presentation of whole subject-matter is, as under :
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Part I |
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Part II |
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Part III |
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Transfer Pricing in Cross Border or International Transactions--Law, Procedure & Audit |
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Section D : Certain Other Provisions Preventing Tax Avoidance |
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Section E : Transfer Pricing Documentation, Audit and Time Limits |
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Part IV |
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Measures as to Double Taxation Avoidance [Sections 90, 90A, 91] |
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Part V |
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Computation of Particulars Business Income Arising During Cross Border Transactions |
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Part VI |
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Treatment of Specific Incomes Arising to Overseas Bodies or Non-Residents |
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Part VII |
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Part VIII |
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Part IX |
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The systematic classification and presentation of the complex subject-matter in lucid manner will help its users to understand and appreciate the international taxation law and thereby enable them to satisfy their clients with ease and perfection. This book is fully updated in the wake of the Finance (No. 2) Act, 2019 along with reference of related Rules, Circulars and Notifications wherever necessary. The entire subject-matter is supplemented with carefully selected case law as available up to 30th September 2019.
We sincerely believe that the present book of ours, will prove to be an indispensable reference guide for any one who is associated with the cross border transactions or international taxation. This book will be useful for taxpayers, professionals and tax administrators, in developing their strategies in dealing with cross border transactions.
Though we have tried to provide our very best while presenting totality of the subject matter from all possible taxation angles, perspectives and dimensions, however, we still solicit creative feedback from our readers to improve the future editions, apart from enhancing our own knowledge.
Free website support comprises Full Reports of all the decisions cited in the text of the book and also includes reproduction of the Circulars, Notifications, Instructions, etc., referred to in this book.
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JODHPUR |
-- Dr. AVADHESH OJHA |
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8 OCTOBER, 2019 |
-- Dr. (CA) NISHA BHANDARI |
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DUSSHERA |
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