Lecture 1 (International Tax)

Question 1

Section 9

Answer 1

Income deemed to accrue or arise in India.

Know-how or technical services should be utilized in India.

Question 2

Section 115A

Answer 2

Tax on Royalty and Interest when PE is not in India.
Rate of tax on Royalty - 10% plus cess and surcharge
Rate of tax on interest - 20% (5% in RDB, LT bonds, infra debt fund and business trust)
No need to file return if tds is deducted.
No deduction under 28 to 44C

Question 3

Section 44DA

Answer 3

Computing income by way of Royalty when PE is in India.
Normal tax rate of 40%
Expenses allowed wholly and exclusively for pe and reimbursement expenses

Question 4

Section 115AB

Answer 4

OFO (overseas financial organization)
Units of MF (equity and debt) and UTI are purchased in Foreign currency.
Tax on LTCG - 10%
111A - 15%

Question 5

Section 115AC

Answer 5

GDR’ purchased by FC in Foreign currency.
Tax on LTCG - 10% plus cess and surcharge
Tax on interest - 10%
No deduction under 28 to 44C

Question 6

Section 115AD

Answer 6

FII securities other than 115AB and 115AC.
Tax on Interest income - 20%
Tax on LTCG - 10%
Tax on STCG - 30%
111A - 15%
112A

Question 7

Section 115BB

Answer 7

Tax on winnings - 30%

Question 8

Section 115BBA

Answer 8

Sportsman not a citizen of India and non resident tax rate - 20%
Game, ads and newspapers and magazines articles.
Sports association and non resident entertainers.
No deduction.