4. In the event of tax disputes, agreements may provide for a two-way consultation mechanism and resolve existing contentious issues. The Treaty must be read carefully to understand its provisions in their proper perspective. The best way to understand the DBAA is to compare it to a partnership agreement between two people. In the partnership, the words “the party to the first part” were used and in the DTA, the words used were “the other Contracting State”. The words “Contracting States” can also be replaced by the names of the respective countries and the DBAA can be re-read for a better understanding. Dear Sir, We had provided services to one of our clients in Zambia and increased our bill in $. Now we have learned that the customer has stated that he will make the payment after deduction of tax. However, we are also required to pay income tax on the expected income from the above service. In this case, we would have to pay double tax on the same income. Can you advise us to avoid such double taxation? I would like to know how to deal with India`s DBAA The Protocol amending the India-Mauritius Agreement, signed on 10 May 2016, provides for withholding tax on capital gains resulting from the sale of shares acquired in a company based in India from 1 April 2017. At the same time, investments made before April 1, 2017 were made with acquired rights and are not subject to capital gains tax in India.
If these capital gains arise during the transitional period of 1. From April 2017 to March 31, 2019, the tax rate is limited to 50% of India`s national tax rate. However, the 50% reduction in the tax rate during the transitional period is subject to the article on the limitation of benefits. Taxation in India at the full national tax rate will take place from the 2019-2020 fiscal year. ATKs can either be comprehensive and include all sources of income, or be limited to certain areas, meaning that income from shipping, inheritance, air travel, etc. will be taxed. India currently has DTAA with more than 80 countries, with plans to sign such contracts with more countries in the coming years. .