International taxation is the study or determination of tax on a person or business subject to the tax laws of different countries or the international aspects of an individual country’s tax laws as the case may be.

International taxation in a simple language means the study of Taxation beyond the National Level. Though we all are very much aware about our Indian Taxation Laws but as time is demanding something more so, there is a need to study the taxation at another level.

Need of International Taxation

International taxation is necessary, because globalisation leads to an erosion of national tax systems. Global players and international investors use liberalization and deregulation, tax loopholes and tax havens to save taxes on a large scale. Currently we are experiencing a re-feudalization of tax systems, i.e. the economically powerful pay less and less and the tax burden on middle and lower incomes increases. This leads to a permanent structural crisis in public finances and a massive redistribution from below to the top.

International taxes can play a major role in regulating and shaping globalisation, both with regard to their steering effect, for instance ecologically, distributive or regulatory, as well as through the tax revenues themselves.

Fundamental Concepts in International Taxation

There are some essential terminologies used in International Taxation. The first concept in international taxation is Income deemed to accrue in India. The Indian Income Tax Act offers for levy of income tax on the earnings of overseas companies and non-residents, but which is restricted to the extent of income accumulated in India. In terms of Section 5 of the Income Tax Act, 1961, a foreign company or any other non-resident individual, is responsible to tax on income which is received or is deemed to be received in India by or on behalf of such person or income which accrues or arises or is deemed to accrue or arise to it in India. Section 9 of the Act specifies certain types of income that are deemed to accrue or arise in India under certain circumstances. No income of a non-resident can be taxed in India unless it falls within the four corners of section 5 read with section 9 of the Income-tax Act.

List of Services Provided by Us for Doing Business in India

•  Entry Strategy

•  Pre Investment Advisory

•  Entity Formation

•  Business Registrations

•  Project support

•  Ongoing Business Support

•  Procurement consultancy

•  Growth strategy

•  Conducting permanent establishment (PE) analysis of foreign companies providing services in India

•  Undertaking in-depth study of the tax treaty between India & Other countries to analyze the tax impact of the transaction in India.

•  Preparation of computation of income, notes on computation and preparation of Return of income.

•  Litigation, Response and Compliance Support