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Recent CBDT Circulars

LIST OF IMPORTANT CIRCULARS ON DTAA AND INCOME OF NON - RESIDENTS IN INDIA CA HINESH DOSHI AND CA AASHISH MEHTA

Sr.No Circular/Notification No. & Date Matter
1 Circular No. 5, Dt.28-9-2004 [270 ITR (St.) 0031] Taxation of business process outsourcing units of Non-Residents in India. (Revised, withdrawing Circular No. 1 Dt : 02-01-2004 [265 ITR (St.)0023])
2 Circular No. 1 of 2003, Dt. 10-2-2003 [260 ITR (St.) 0245] Residential status under Indo - Mauritius Double Tax Treaty
3 Circular No. 10/2002, Dt. 9-10-2002 [258 ITR (St.) 9] Submission of no objection certificate in case of Remittances to Non - residents
4 Circular No. 787, Dt. 10-2-2000 [243 ITR (St.) 1] Taxation of income of artists, entertainers, sportsmen, etc.,from international/local events
5 Circular No. 742, Dt. 2-5-1996 [219 ITR (St.) 0049] Taxation of foreign telecasting companies
6 Circular No. 765, Dt. 15-4-1998 [231 ITR (St.) 0010] Taxation of foreign telecasting companies
7 Circular No. 6/2001, Dt. 5-3-2001 [248 ITR (St.) 247] Taxation of foreign telecasting companies
8 Circular No. 740, Dt. 17-4-1996 [ 219 ITR (St.) 0008] Taxability of remittance of interest by Branch of a foreign bank of its head office.
9 Circular No. 734, Dt. 24-1-1996 [ 217 ITR (St.) 0074] Rate of TDS under DTAA between India & U.A.E.
10 Circular No. 728, Dt. 30-10-1995 [216 ITR (St.) 0141A] Clarification regarding rate of TDS u/s 195 for remittance, clarified that such rates shall be as provided in relevant Finance act or in DTAA whichever is more beneficial to the assessee
11 Circular No. 588, Dt. 2-1-1991 [187 ITR (St.) 0063] Taxability of import of system software from Non-residents
12 Circular No. 333, Dt. 2-4-1982 [137 ITR (St.) 0001B] A conflict in application of DTAA and provisions of Income tax Act, 1961, clarified that beneficial provision shall apply
13 Circular No. 108, Dt. 20-3-1973 In relation to exchange of information between the countries for preventing evasion or avoidance of taxes and recovery thereof
14 Circular Nos. 90 & 91/2008, Dt. 28-8-2008 [304 ITR 63] Where treaty provides that any income of an Indian Resident "may be taxed" in the other country, such income shall be included in the total Income of such resident and relief shall be available as per DTAA
15 CBDT Instruction No. 3/2004, Dt. 19-3-2004 Suspension of collection of taxes during operation of Mutual Agreement Procedure in respect of India - UK DTAA
16 Circular No. 7 / 2009 [F. No.500/ 135/2007-FTD-I], Clarification Dt. 22-10-2009 [318 ITR 1]

Circular No. 23 dated 23rd July.1969 and Circular No. 163 dated 29th May, 1975 (both relating to taxability and accrual of Income of Non-resident in India) are withdrawn. Further, circular no. 786 dated 7th February, 2000 (relating to clarifation of taxability of export commission in the hands of Non-resident in India) is also withdrawn
17 Circular No. 7 Dt. 23-10-2007 amended on 27-09-2011 [338 ITR 1] The CBDT has laid down the procedure for refund of tax deducted at source u/s 195 of the Income tax Act, 1961 to the person deducting tax at source from the payment to a Non-resident. Refund will now be available to residents who have deducted tax at a higher rate, relying on tax treaty, while a lower rate of tax deduction has been prescribed under domestic law
18 Notification No. 93/2009, Dt. 9-12-2009 [320 ITR 14] "The territory in which the taxation law administered by the Ministry of Finance in Taipei is applied" has been notified as "Specified Territory" and "India-Taipei Association in Taipei" and "Taipei Economic and Cultural Centre in New Delhi" have been notified as "Specified Association" u/s 90A of the Income tax Act, 1961
19 Notification No.22/2010 [F.No. 142/5/2010-SO(TPL)], Dt. 8-04-2010 [323 ITR 52] The following areas outside India have been notified as 'specified territory' u/s 90 of the Income tax Act 1961:
  1. Bermuda
  2. British Virgin Islands
  3. Cayman Island
  4. Gibraltar
  5. Guernsey
  6. Isle of Man
  7.  Jersey
  8. Netherlands Antilles
  9. Macau
20 Notification No.25/2010 [F.No.500/124/97-FTD-II], Dt. 20-04-2010 [323 ITR 52] "Hong Kong Special Administrative Region of the People's Republic of China" has been notified as "Specified territory" u/s 90 of the Income tax act, 1961
21 Notification No.54/2012[F.No.503/14/2012-FTD-I(PT)], Dt. 17-12-2012 [350 ITR 4] Sint Maarten, a part of Kingdom of Netherland, has been notified a 'Specified Territory' u/s 90 of the Income tax Act, 1961
22 Notification No. 3/2011-FTD-II [F.No.500/96/97-FTD-II], Dt. 10-01-2011[330 ITR 6] Agreement among Government of SAARC Member States for avoidance of double taxation and Mutual administrative matters is effective from 1 April, 2011
23 Notification No. 05/2011 [F.No.503/2/2009-FTD-I] [330 ITR 83] Dt: 24/01/2011 Tax Information Exchange Agreement between India and Barmuda signed on 7 October 2010
24 Notification No. 25/2011 [F.No.503/6/2009-FTD-I] [334 ITR 296] Dt : 13/05/2011 Tax Information Exchange Agreement between India and Bahamas signed on 11 February, 2011
25 Notification No. 54/2011 [F.No.503/10/2009-FTD-I] [338 ITR 25] Dt : 03/10/2011 Tax Information Exchange Agreement between India and British Virgin Island signed on 9 February, 2011
26 Notification No. 26/2011 [F.No.503/01/2008-FTD-I] [334 ITR 313] Dt: 13/05/2011 Tax Information Exchange Agreement between India and Isle of Man was signed on 4 February, 2011
27 Notification No. 61/2011 [F.No.503/03/2009-FTD-I] [340 ITR 1] Dt: 27/12/2011 Tax Information Exchange Agreement between India and Cayman Islands was signed on 21 March, 2011
28 Notification No.32/2012-FT-TR-II [F.No. 503/02/2010-FT & TR-II] [348 ITR 132] Dt: 17/08/2012 Tax Information Exchange Agreement between India and Liberia was signed on 03 October, 2011
29 Notification No.26/2012 [F.No.503/6/2008-FTD-I] [346 ITR 1] Dt: 10/07/2012 Tax Information Exchange Agreement between India and Jersey was signed on 03 November, 2011
30 Notification No.30/2012 [F.NO.503/01/2009-FTD-I] [346 ITR 169] Dt: 09/08/2012 Tax Information Exchange Agreement between India and Guernsey was signed on 20 December, 2011
31 Notification No. 43/2012-FT&TR-II [F.No.503/04/2009-FT&TR-II] [349 ITR 3] Dt 10/10/2012 Tax Information Exchange Agreement between India and Macao Special Administration Region of the People's Republic of China signed on 03 January, 2012
32 Notification No. 28/2013 [F.No.503/11/2009-FTD-I] [352 ITR 58] Dt: 01/04/2013 Tax Information Exchange Agreement between India and Gibraltar was signed on 01 February, 2013
33 Notification No. 22/2013 [F.No.504/3/2010-FTD-III] [352 ITR 46] Dt: 22/03/2013 Tax Information Exchange Agreement between India and Argentina was signed on 21 November 2011
34 Notification No. 48/2011 [F.NO. 500/02/2001-FTD-II] [337 ITR 96] Dt: 02/09/2011 Agreement between India-Taipei Association in Taipei and Taipei Economic and Cultural Center in New Delhi for Avoidance of Double Taxation and the prevention of Fiscal Evasion with respect to taxes on income shall be effective from 1 April, 2012.
The Agreement notifies the following rates for taxes on income-

  1. Dividend - 12.5% @
  2. Interest - 10 % @
  Interest will be exempt if derived and beneficially owned by
 
  1. The authority administering a territory, a sub-division or a local authority of other territory; or
  2. Central Banks and Export-Import Bank of the territories referred above;or
  3. any other institution as may be identified and accepted from time to time by competent authority by both the territories.
 
 
 
  1. Royalty and fees for technical services-10% @
35 Press Release, Dt.01-03-2013 Finance Ministry's clarification on Tax Residency Certificate (TRC). The Tax Residency Certificate produced by a resident of a contracting state will be accepted as evidence that he is a resident of that contracting state and the Income Tax Authorities in India will not go behind the TRC and question his resident status
36 Notification No. 29/2013 [F.NO. 503/5/2004-FTD-II]/SO 951(E), Dt. 12-4-2013 Protocol amending agreement between Government of India and Government of UAE
37 Notification No. 43/2013 [F.No.503/05/2009-FTD-I]/SO 1516(E), Dt. 12-6-2013 India-Monaco DTAA to come into effect from March 27, 2013.
38 Notification No. 44/2013 [F.No.503/03/1994-FT&TR-II]/SO 1766(E) Dt. 19-6-2013 India-Bahrain DTAA to come into effect from April 11, 2013.
39 Notification No. 50/2013 [F.No.500/27/2007-FTD-II]/SO 2005(E), Dt. 4-7-2013 Protocol amending the Convention between the Republic of India and People's Republic of Bangladesh
40 Instruction No. 8/2013, Dt. 16-07-2013 Standard operating procedure for appeals/SLP's filed by the assessee in the Supreme court and related matters
41 Notification No. 57/2013 [F.No. 142/16/2013-TPL/SO 2331(E)], Dt. 01-08-2013 Income Tax (11th Amendment) Rules, 2013 - Additional Details required to be furnished along with TRC done away with.
42 Notification No. 63/2013 [F. No. 505/02/1981-FTD-I]/SO 2459(E), Dt. 14-8-2013 Protocol amending the Convention between the Republic of India and Kingdom of Sweden
43 Circular [F. No. 500/138/2002-FTD-II], Dt. 16-8-2013 India-Uruguay DTAA to come into effect from April 1, 2014.
44 Notification no. 67/2013, Dt. 02-09-2013 Income Tax (14th Amendment) Rules, 2013 - Information by the person responsible for making any payment to a non - resident
45 Notification No. 73/2013 [F.No. 142/28/2013-TPL] Dt.18-09-2013 Safe Harbour Rules - Income Tax (16th Amendment) Rules, 2013
46 Notification No. 74/2013 [F.No. 503/1/2009-FTD-II] Dt. 20-09-2013 Protocol Amending Convention between Republic of India and Government of Australia
47 Notification No. 75/2013, [F.No. 142/19/2013-TPL], Dt.23-09-2013 Rules relating to GAAR notified with effect from 1st April, 2016
48 Notification No. 86/2013 [F.No. 504/05/2003-FTD-1], Dt. 01-11-2013 Government specifies 'Cyprus' as 'notified jurisdictional area'
49 Notification No. 3/2014[F.No.503/4/2012-FTD-I]/SO 48(E), Dt. 7-1-2014 India-Belize DTAA to come into effect from November 25, 2013.
50 Notification No.2/2014 [F.No.501/1/2003-FTD-I]/SO 47(E), Dt. 7-1-2014 India-Albania DTAA to come into effect from December 4, 2013.
51 Circular No. 1/2014, [F No. 275/59/2012-IT(B)], Dt. 13-1-2014 Clarification regarding deduction of tax at source under section 194J - No TDS is required to be deducted on the service tax component on Professional Fees
52 Notification No. 10/2014 [F.No. 505/3/1986-FTD-I]/SO 372(E), Dt. 10-2-2014 Protocol amending the convention between India and United Kingdom & Northern Ireland effective from December 27, 2013.
53 Instruction no. 2/2014, [F.No. 500/33/2013-FTD-I], Dt. 26-02-2014 Deduction of tax at source u/s 195 r.w.s 201 of the Act relating to payment made to non-resident. In case where assessee fails to deduct tax u/s 195, the AO shall determine the appropriate proportion of sum chargeable to tax to ascertain tax liability on which deductor shall be deemed to be assessee in default u/s 201
54 Notification No. 12/2014 [F.No. 503/02/1997-FTD-I] Dt. 05-03-2014 India-Latvia DTAA to come into effect from April 1, 2014.
55 Notification No. 13/2014 [F.No. 501/10/1995-FTD-I] Dt. 05-03-2014 India-Romania DTAA to come into effect from December 16, 2013.
56 Notification No. 23/2014 [F.No. 503/08/2005-FTD-II] Dt. 28-03-2014 India-Sri Lanka DTAA to come into effect from April 1, 2014.
57 Instruction no. 4/2014, [F.No. 225/151/2014-ITA.II], Dt. 07-04-2014 Standard operating procedure for verification and correction of demand available or uploaded by AO in CPC Demand Portal
58 Notification No 34/2014 [F.No. 504/06/2003-FTD-I] Dt. 05-08-2014 India-Malta DTAA to come into effect from April 1, 2015.
59 Notification No. 35/2014/F.No. 503/11/2005-FTD-II Dt. 12-08-2014 India-Fiji DTAA to come into effect from April 1, 2015.
60 Notification No. 44/2014/F.No. 501/3/99-FTD-II Dt. 23-09-2014 India-Columbia DTAA to come into effect from April 1, 2015.
61 Notification No. 42/2014/F.No. 503/4/2004-FTD-II Dt. 05-09-2014 India-Bhutan DTAA to come into effect from April 1, 2015.
62 Notification No. 25/2015/F.No. 501/12/1995-FTD-I Dt. 23-03-2015 India-Czechoslovak DTAA to apply to residents of Slovak Republic.
63 Notification No. 24/2015/F.No. 501/09/1995-FTD-I Dt. 17-03-2015 India-Croatia DTAA to come into effect from April 1, 2016.
64 Notification No. 30/2014/F.No. 503/4/2009-FTD-I Dt. 06-06-2014 Tax Information Exchange Agreement between India and Liechtenstein.
65 Notification No. 10/2015/F.No. 500/144/2005-FTD-I Dt. 02-02-2015 India notifies protocol with South Africa for DTAA.
66 Notification No. 47/2014/F.No. 501/08/1979-FTD-I Dt. 24-09-2014 India notifies protocol with Poland for DTAA.
67 Circular No. 4/2015 Dt. 26/03/2015 Clarification regarding Dividend Income received outside India.
68 Notification No. 45/2014
[F.No.500/1/2014-APA-II]
Dt:23/09/2014		 Computation of Arm’s Length Price - Notified Tolerable Limit for
determination of ALP
69 A.P. (DIR Series)(2013-14) Circular
No. 151
Dt:30/06/2014		 Remittances To Non-Residents - Deduction Of Tax At Source
70 Press Release Dt 06/05/2015 Revised Agreement Under India-Republic of Korea DTAA
71 Instruction [F.No. 500/36/2015-FTD.I] Dt: 24/04/2015 Claim of Treaty benefits by FIIs under Provisions of Double
Taxation Avoidance Agreements
72 Instruction No. 3/2015
[F.No. 500/2/2015-APA-II]
Dt :10/04/2015		 India-UK Convention for avoidance of Double Taxation and Prevention of Fiscal Evasion - Suspension of collection of taxes during Mutual Agreement Procedure (MAP)
73 Circular No.3/2015 [F.No.225/201/2014-
ITA.II] Dt: 12/02/2015		 Interest, etc., paid to a Non-Resident without deduction of Tax at Source - Clarification on Amounts not deductible under Section 40(a)(i)
74 Press Release Dt: 31/3/2015 Clarification on Advance Pricing Agreement (APA) filed or entered into prior to 01-01-2015
75 Press Release Dt: 11/05/2015 Imposition of Minimum Alternate Tax (MAT) on foreign companies particularly FIIs
76 Press Release Dt: 21/05/2015 Draft scheme of proposed rules for computation of Arm’s Length Price (ALP) of an International Transaction or Specified Domestic Transaction undertaken on or after 01.04.2014.
77 Notification No. 45/2015 [F.No. 503/02/1998-FTD-I] Dt: 22/05/2015 Protocol amending convention between Republic of India and The Kingdom of Denmark
78 Circular No. 10/2015 Dt: 10/06/2015 Clarifications on Rollback Provisions of Advance Pricing Agreement Scheme
79 Press Release Dt: 09/07/2015 Inter Governmental Agreement (IGA) signed between India and USA to Implement Foreign Account Tax Compliance Act (FATCA) to promote transparency in Tax matters
80 Notification No. 63/2015 [F.No. 500/02/2003-FTD-I] Dt: 12/08/2015 Tax information exchange agreement between India and San Marino
81 Circular DBR.AML.BC.No.36/14.01.001/2015-16 Dt: 28/08/2015 Reporting requirement under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS)
82 Press Release Dt: 24/09/2015 Provision of Section 115JB not aplicable to Foreign Company if that foreign company is a resident of a country having DTAA with India and such foreign company does not have a PE as per DTAA.(w.e.f. 01-04-2001)
83 Press Release Dt: 07/10/2015 Protocol amending agreement between India and Israel
84 Press Release Dt: 07/10/2015 Protocol amending agreement between India and Vietnam
85 Press Release Dt: 29/10/2015 Taxation of Income from offshore rupee denominated bonds
86 Notification No. 86/2015[F. No. 500/1/2014-APA-II] Dt: 29/10/2015 Computation of Arm’s Length Price - Notified Tolerable Limit For
Determination of ALP
87 Press Release Dt: 05/11/2015 Protocol amending agreement between India and Turkmenistan
88 Press Release Dt: 18/11/2015 Protocol amending agreement between India and Kuwait
89 Notification No. 88/2015 [F.No. 503/5/2005-FTD-II] Dt:01/12/2015 India - Thailand DTAA to come into effect from April 1, 2016
90 Press Release Dt: 02/12/2015 Protocol amending agreement between India and Japan
91 Press Release Dt: 09/12/2015 Memorandum of Understanding (MoU) signed between India and Korea for suspension of collection of taxes during pendency of MAP
92 Notification No. 93/2015 (F.No. 133/41/2015-TPL] Dt: 16/12/2015 Income tax rules amended to substitute Rules 37BB, Form No. 15CA And Form No. 15CB w.e.f. April 1, 2016
93 Notification No. 94/2015 (F.No. 503/08/2004-FTD-I) Dt:21/12/2015 India-Macedonia DTAA to come into effect from April 1, 2015.
94 Instruction No. 18/2015 [F. No. 153/12/2015-TPL],Dt:23/12/2015 Applicability of MAT on Foreign Companies for period prior to 01/04/2015
95 Press Release Dt: 30/12/2015 Protocol amending convention between India and Slovenia
96 Press Release Dt: 30/12/2015 Tax information exchange agreement between India and Maldives
97 Press Release Dt: 31/12/2015 Guidance note on implementation of reporting requirements under rules 114F to 114H of the Income Tax Rules, 1962
98 Notification No.2/2016 (F.No.501/07/1999-FTD-I)] Dt: 13/01/2016 Protocol amending the agreement between India and Belarus
99 TDS Instruction No. 51 [F.No.SW/TDS/02/2013/DIT(S)-II Dt: 04/02/2016 Issuance of online certificate under section 195(2) and 195(3)
100 Press Release Dt: 17/02/2016 Revised 2016 U.S. Model Income Tax Convention
101 Circular No. 2/2016 [F.No. 500/82/2015-FTD.I], Dt 25/02/2016 Protocol Amending the Agreement between India and UK
102 Circular No. 7/2016 [F.No. 225/2/2016/ITA.II] Dt:07/03/2016 Clarification regarding taxability of Consortium Members in EPC/Turnkey contracts
103 Instruction No.3/2016
[F.No.500/9/2015-APA-II]
Dt :10/03/2016		 Computation of Arm's Length Price and guidelines for implementation of Transfer Pricing provisions
104 Notification No. SO 1144(E) [No.17/2016 (F.No. 503/4/2005-FTD-II)] Dt. 16/03/2016 India-Indonesia DTAA to come into effect from April 1, 2016
 

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