International Tax Services

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Are you involved in international transactions, such as export-import or overseas investments? Here are key points you should know:

International Tax Services in Ahmedabad
International Tax

Phone No - +91 80000 57972

Mail us at - [email protected]

    International Tax Services

    Benefits of Setting Up a Branch in Dubai, Singapore, Mauritius, Hong Kong, or BVI

    • Understanding TDS liabilities on foreign payments, including fees for technical services

    • Offshore structuring related to International Transfer Pricing (ITP)

    • Leveraging the Double Taxation Avoidance Agreement (DTAA)

    • Ensuring compliance with RBI & FEMA regulations to avoid potential legal issues

    Our international tax services cover a wide range of complex cross-border and domestic transactions, including:

    • Expansion of Indian businesses globally

    • Issues related to tax treaties, income characterization, and permanent establishment concerns

    • Transfer pricing strategies

    • Structuring cross-border mergers and acquisitions

    • Financing strategies for international transactions

    • Restructuring of international investments

    • India-specific entry and exit strategies

    • Taxation for Non-Resident Indians (NRIs)

    It is often observed that while foreign companies have expert consultants for their tax-related matters, many NRIs are not fully aware of even basic provisions. This lack of awareness can lead to unnecessary penalties or missed opportunities for significant benefits. For example, under the DTAA between India and the UK (and many other countries), dependent personal services are taxed only in the country where the individual is employed, not where they reside. This creates opportunities for legal income planning. Without this knowledge, one might end up paying taxes in both countries.

    As an example, many NRIs, even after living abroad for years, are unaware that Fixed Deposits (FDs) in India under an NRE account are fully tax-exempt. Ironically, instead of capitalizing on this tax-exemption available exclusively to NRIs, many invest in other high-risk instruments that offer marginally higher returns but are subject to tax.

    Our expert team can help you plan your tax strategy, ensuring you leverage the best options available to you.

    Our Key NRI Taxation Services Include:

    • Obtaining a lower or Nil rate TDS certificate for the sale of immovable property by an NRI

    • Ensuring compliance with FATCA regarding Indian assets and income

    • Estate planning during family settlements

    • Benefits of the Double Taxation Avoidance Agreement (DTAA)

    • FEMA compliance for sending or receiving gifts in India

    • Understanding RBI regulations for loans from Indian entities

    • Setting up a business in India, whether as an extension of a US-based business or as an independent entity

    International Tax Services

    FAQs Related to NRI Taxation and International Transactions

    1. What is the benefit of the Double Taxation Avoidance Agreement (DTAA) for NRIs?
      DTAA allows NRIs to avoid paying taxes on the same income in both India and their country of residence. It helps allocate taxing rights between countries and provides relief from double taxation.
    2. Are Fixed Deposits in India tax-exempt for NRIs?
      Yes, NRIs can enjoy tax-exemption on interest earned from Fixed Deposits (FDs) in India under an NRE account. This benefit is not available to residents.
    3. What is the process to obtain a lower or Nil rate TDS certificate for NRIs?
      NRIs can apply to the tax department for a lower or Nil rate TDS certificate if they wish to reduce or eliminate the tax deducted at source on income such as rent, property sale proceeds, or other earnings in India.
    4. How can I comply with FATCA regulations regarding my Indian assets?
      FATCA compliance involves reporting your financial accounts and assets in India to the relevant authorities, ensuring your investments comply with international tax reporting standards.
    5. Can NRIs receive gifts from family members in India without any issues?
      NRIs can receive monetary gifts from relatives in India, but it’s essential to ensure compliance with FEMA (Foreign Exchange Management Act) regulations and understand the limits on such transactions.
    6. How can I structure my business in India as an NRI?
      NRIs can set up a business in India either as an independent entity or as an extension of their business from abroad. The process involves meeting RBI regulations and ensuring proper legal and tax compliance.
    7. What is the role of RBI and FEMA in NRI transactions?
      RBI and FEMA regulations govern cross-border transactions, investments, and remittances. NRIs need to ensure that their transactions, such as receiving gifts or making investments, comply with these regulations to avoid penalties.