Avoidance of double taxation permits treaty-based credits or deductions to prevent tax being imposed twice on cross-border income. Article 23 prescribes reciprocal methods for avoidance of double taxation: India allows deductions from Indian tax for Japanese tax paid on income taxable in Japan, including sequencing against corporate surtax, and may include Japan-only taxable income in its tax base while deducting the tax attributable to that income. Japan, subject to its laws on foreign tax credits, allows residents a credit for Indian tax paid on income taxable in India, with special credit treatment for dividends received by qualifying resident companies that reflect Indian tax paid by the paying company.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Avoidance of double taxation permits treaty-based credits or deductions to prevent tax being imposed twice on cross-border income.
Article 23 prescribes reciprocal methods for avoidance of double taxation: India allows deductions from Indian tax for Japanese tax paid on income taxable in Japan, including sequencing against corporate surtax, and may include Japan-only taxable income in its tax base while deducting the tax attributable to that income. Japan, subject to its laws on foreign tax credits, allows residents a credit for Indian tax paid on income taxable in India, with special credit treatment for dividends received by qualifying resident companies that reflect Indian tax paid by the paying company.
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